As hydrogen hype meets reality in Newfoundland, companies eye markets closer to home

Frank Davis, an assistant vice-president with Pattern Energy, tells reporters that his company would be a competitive supplier of wind energy to Newfoundland and Labrador Hydro, June 4, 2025, in St. John's, N.L. THE CANADIAN PRESS/Sarah Smellie

ST. JOHN'S — The global green hydrogen industry is lagging behind its own hype, but executives from six companies vying to build wind-powered hydrogen operations in Newfoundland and Labrador say it’s too soon give up.

They told an energy industry conference in St. John’s, N.L., on Wednesday that it has been difficult to find big enough buyers — or “offtakers” — to make the projects viable. But economic uncertainty in the United States could create opportunities in Canada, some said.

And there may be a chance to supply wind power to the local grid in Newfoundland and Labrador.

“None of the audience, none of the members, should think for a second that, ‘Oh boy, renewable energy in Newfoundland is on hold for a little while, while Europe figures out what it wants to do,’” said Frank Davis, an associate vice-president with Pattern Energy.

“My message to some of the folks in the room is, ‘Get your engineering teams ready,’” said Jeff Murphy, vice-president of capital projects with North Atlantic.

The race to launch a green hydrogen industry in Canada’s easternmost province began in earnest in 2022 when Olaf Scholz, the former chancellor of Germany, visited western Newfoundland in 2022. He signed a memorandum of understanding with former prime minister Justin Trudeau to develop a transatlantic green hydrogen corridor, with the first shipments hoped to begin this year.

That no longer seems possible.

“In 2021, 2022 the world thought everything was going to be running on hydrogen,” Karlis Povisils, with Copenhagen Infrastructure Partners, told reporters after the event. “I think the hype has boiled off, and that’s a healthy thing. The players that are left are the ones that are serious and committed.”

The local green energy industry will ultimately rely largely on exports, Povisils said. But in the meantime, he has his eye on the local power grid in Newfoundland and Labrador.

The province’s Crown utility company is expected to post a call this year for companies interested in supplying the grid with wind-generated power. It’s the most important “near-term opportunity” on the horizon, Povisils said.

Davis agreed.

“If Newfoundland and Labrador Hydro wants to be a buyer of wind energy, we’d certainly consider ourselves to be a low cost, very competitive supplier of that wind energy,” he told reporters.

In western Newfoundland, World Energy GH2 remains the only company that has cleared the province’s environmental assessment process. It is also exploring other options as the global market develops, including data centres and a “renewable energy campus.” The idea is to invite industries to set up shop in Stephenville, N.L., and use clean power supplied by World Energy GH2, a spokesperson explained.

“We are under threat,” said Richard Hugh, the company’s chief executive, referring to Canada’s tense relationship with United States President Donald Trump. “We do need to figure out how we capitalize on our position as a global superpower, and our global superpower currency is our renewable natural resources.”

Hugh said the company has already invested more than $100 million into the project.

Most of the companies have proposed erecting wind turbines in select areas across the island of Newfoundland to power plants to produce ammonia. That ammonia would then be shipped across the Atlantic to be converted to hydrogen and used for fuel.

North Atlantic is looking at using liquid organic hydrogen carriers, which absorb and release hydrogen through chemical reactions, rather than ammonia, Murphy said.

Ultimately, the goal is to reduce the costs of shipping in order to attract buyers, he said. Buyers will move the project toward a final investment decision.

“We’re trying to do something that no one’s ever done before,” Murphy said. “Moving large amounts of hydrogen across an ocean is hard and it’s expensive, and we are working through those challenges.”

This report by The Canadian Press was first published June 4, 2025