Project Nujio’qonik: government support for renewable ammonia in Canada
By on April 08, 2024
Click to learn more. Project Nujio’qonik, to be located at the Port of Stephenville in NewFoundland & Labrador, has received federal government funding to accelerate project development. Source: Port of Stephenville.
Through Export Development Canada (EDC), Newfoundland & Labrador-based renewable ammonia Project Nujio’qonik has received support from the federal government in the form of a CA$128M (US$95 million) credit facility. This will help progress the project through to the close of its long-term financing.
When completed, Project Nujio’qonik will produce about 210,000 tons of renewable hydrogen annually (equivalent to 1.2 million tonnes of ammonia). Both the ammonia & hydrogen produced in the project will be RFNBO-compliant (renewable fuels of non-biological origin).
Phase one of the project, which will produce about 400,000 tons of ammonia, will create an estimated 2,200 direct construction jobs, 400 operations jobs, and 4,200 indirect jobs. The hydrogen and ammonia produced will mainly be exported to Germany, and also consumed locally in Canada.
This commitment from the federal government reflects the confidence we’ve built in Project Nujio’qonik, both here in Canada and internationally. By consistently achieving key de-risking milestones, we’ve confirmed that Project Nujio’qonik is one of the leading, commercial-scale green hydrogen projects in the world.
Sean Leet, MD and CEO, World Energy GH2, in his organisation’s official press release, 28 February 2024
Project Nujio’qonik will surpass the highest global standards for emissions and sustainability, and is poised to deliver against Europe’s ambitious RePowerEU targets for green hydrogen.
Meeting those targets will require continued, decisive action by the European Commission and its member states. We thank the federal government for their leadership and commitment to moving Canada forward as a leader in the global energy transition.
John Risley, Chair, World Energy GH2, in his organisation’s official press release, 28 February 2024
Thanks to this commitment from the federal government, we expect our project to move more quickly into the next phase, such as FEED execution and long-lead item orders, which will be of great help in achieving our goal of being the first commercial green hydrogen / ammonia producer in Canada.
Kyung-il Park, President and CEO of SK ecoplant (investor in Project Nujio’qonik), in his organisation’s official press release, 28 February 2024
We are committed to reaching net-zero emissions by 2050 by prioritizing clean technology and energy leadership in Canada. This involves emphasizing innovation, creating green jobs, and supporting projects like the World Energy GH2 initiative.
The Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, in World Energy GH2’s official press release, 28 February 2024
Since its launch in August 2022, Project Nujio’qonik has seen rapid progress. Key milestones prior to the federal government funding include:
- August 2022: Signing of the Canada – Germany Hydrogen Alliance at the Project Nujio’qonik site in Stephenville. The agreement seeks to “establish a Transatlantic Canada-Germany supply corridor”.
- May 2023: A USD $50M investment in the project by SK ecoplant for a 20% stake in the project.
- June 2023: Acquisition of the Port of Stephenville by World Energy GH2.
- August – September 2023: Crown lands (108,000 ha) application approval and agreement with Topsoe on the supply of its ammonia synthesis loop technology.