Commercial green hydrogen and ammonia production to become a reality in Canada

The country is set to get its first production facility with the help of McDermott. McDermott, a Houston-based, fully-integrated provider of engineering and construction solutions to the energy industry, is set to construct Canada’s first commercial green hydrogen and ammonia production facility. The facility will be located in Central Newfoundland and is part of the Exploits Valley Renewable Energy Corporation (EVREC) project. McDermot achieved an ECI agreement from Abraxas Power. McDermott was awarded an Early Contractor Involvement (ECI) agreement from Abraxas Power Corporation for the gre…

The country is set to get its first production facility with the help of McDermott.

McDermott, a Houston-based, fully-integrated provider of engineering and construction solutions to the energy industry, is set to construct Canada’s first commercial green hydrogen and ammonia production facility. The facility will be located in Central Newfoundland and is part of the Exploits Valley Renewable Energy Corporation (EVREC) project.

McDermot achieved an ECI agreement from Abraxas Power.

McDermott was awarded an Early Contractor Involvement (ECI) agreement from Abraxas Power Corporation for the green hydrogen and ammonia project. Under the scope of the agreement, McDermott will reportedly provide:

• Front-end engineering design (FEED).
• Engineering, procurement, and construction (EPC) execution planning services.
• Open book EPC cost estimate for hydrogen production, ammonia processing, and product storage portion.

The construction work will be led from McDermott’s Houston office with support from another of its offices located in India. Rob Shaul, McDermott’s Senior Vice President, Low Carbon Solutions, said in a recent company news release that McDermott’s “century of experience” means that it can offer Abraxas a “repeatable modular implementation solution” that is highly anticipated to drive cost savings, lower risk and deliver quality assurance.

165kta of green hydrogen and 5,000 metric tons per day of ammonia.

The green hydrogen and ammonia production facility will include 150 MW solar photo voltaic, and the development of a wind farm with up to 530 turbines capable of generating 3.5 GW of power. As for hydrogen production and ammonia production, the facility is expected to have the ability to generate 165kta of hydrogen and 5,000 metric tons of ammonia daily.

A step in the right direction for Canada’s Hydrogen Strategy.

Back in 2020, the Canadian Government announced its Hydrogen Strategy for the country. At the time, the government underlined the importance of low-carbon H2 as a vital part of achieving net zero emissions by 2050. However, while 80 low-carbon hydrogen production projects are currently in the works in the nation, it’s likely only a handful of them will see the light of day before the end of the decade. At the very least, this McDermott-constructed green hydrogen and ammonia production project will help Canada in its efforts to achieve its net-zero goals.