World Energy GH2 buys Stephenville port to clear the way for producing and shipping hydrogen
The company planning to generate electricity through renewable wind energy in western Newfoundland has purchased the Port of Stephenville to serve as a shipping hub for green hydrogen and ammonia.
World Energy GH2 says acquiring the port is an important step toward bringing hydrogen and ammonia produced in Newfoundland to global markets. Talks to acquire the port have been ongoing for at least a year, with World Energy GH2 chairman John Risley entering into an agreement in May 2022 with First Nations partners to acquire the port.
The price of the acquisition was not disclosed.
In a press release issued Thursday, Risley said the acquisition will make the project's net-zero emission goal a reality.
"Our port and our project will serve as a catalyst for other green hydrogen projects in Atlantic Canada and beyond. And it's a project of which we will all be proud," Risley said.
"But this isn't just about our project or our region; this is about an entire industry, and Canada's responsibility to manage a timely and effective energy transition that will create opportunities and prosperity for generations to come."
World Energy GH2's goal is to be the first major producer to export ammonia by 2025. The project is seen as a key player in the Canada-Germany 'hydrogen alliance,' which will allow Canada to help in Germany's search for clean energy sources.
The sheltered, year-round deepsea port is a key shipping area in the region due to its ability to accommodate large vessels.
Sean Leet, the company's managing director, says owning the port is key for the project's development.
"It's a part of having sight control for the project, which is a key element in the building blocks for the overall financing of the project," Leet said Thursday.
"It's key that the project had ownership of the port.… There's different activities that will need to be undertaken that, really, only lend itself to having the project have ownership of the asset itself."
Horizon Maritime Services, a management company with operations in St. John's, will operate the port on behalf of World Energy GH2 as of Thursday. Leet says port staff will continue in their current roles.
Most of the needed infrastructure is already in place, he added, and enhancements will be made over time as the project develops.
"I think everybody in the region is going to be extremely pleased."
