Parsons, Furey in the Netherlands to 'sell, sell, sell' Newfoundland as hydrogen powerhouse

Newfoundland and Labrador has signed a memorandum of understanding to explore future hydrogen-to-ammonia opportunities with the Port of Rotterdam — the largest port in Europe.

The deal comes as Energy Minister Andrew Parsons and Premier Andrew Furey are in the Netherlands this week, shopping the province to major players in Europe's emerging hydrogen market.

Parsons is part of the province's 75-person delegation at the World Hydrogen Summit, held each year in Rotterdam, the country's second-largest city.

"It's a signed declaration that we're going to co-operate and explore opportunities when it comes to green hydrogen and hydrogen technology," Parsons said of the Port of Rotterdam deal. "I guess it's signifying our intention to work together, and we need to have opportunities not just with companies that exist over here but with the ports themselves."

Newfoundland and Labrador is pitching itself as a major exporter of ammonia, created through a process that turns wind energy into hydrogen, which is converted to ammonia and shipped to ports around the world.

The province doesn't currently have any active wind-to-hydrogen projects but is processing 19 applications from companies vying for access to Crown land for wind farms. 

Parsons said the hope is to announce the successful bidders by the end of June or early July.

"We have the possibility of multiple projects happening, but we want them to be feasible. We want them to be successful," he said.

He was joined in Rotterdam by representatives from the companies bidding for projects, as well as delegates from towns that could be home to wind farms or shipping ports, like Port aux Basques, Corner Brook, Botwood and Placentia.

Province can capitalize on hydrogen rush, minister says

The hydrogen sector has been heating up in Europe, especially since the Russian invasion of Ukraine prompted countries like Germany to confront their reliance on Putin's regime for energy.

Countries are also looking for ambitious ways to meet climate targets and wean themselves off fossil fuels. The European Commission aims to have 14 per cent of the European Union's energy demands met by hydrogen by 2050.

Interest in so-called green hydrogen has spiked since then. Parsons said they were told the Rotterdam summit was supposed to have 8,000 attendees, which would have doubled the number from the previous year.

"We just got told there's 20,000 people here," Parsons said Wednesday morning. "The place is just booming here."

The province signed a memorandum of understanding with Germany last summer to form a "hydrogen alliance," with a lofty goal of beginning exports by 2025. That's led to some concerns that the province is moving too fast in an emerging industry that is largely untested.

"People ask me all the time, 'You seem to be moving very fast.' Well, there's a demand that's here," Parsons said. "We have to meet that demand, and we're competing with Nova Scotia and other provinces. We have to get the announcements out the door so the companies themselves can go through the construction phase plus the related environmental assessments that come with it. Because if you want to start producing by '25, there's a lot of work to be done."

With interest peaking, Parsons said his government is trying to balance due diligence with getting ahead of competitors.

There's been significant pushback to a proposed project on Newfoundland's Port au Port Peninsula, with protesters voicing concerns over potential environmental impact and politicians hammering the premier for being friends with the project's main proponents, World Energy GH2.

"In order to do any resource development, you have to have social licence," Parsons said. "But I do find it interesting that there's a lot of attention paid to one particular area and one particular project when we have 19 proponents throughout the entirety of Newfoundland."

Furey, for his part, has repeatedly stressed his hands will not touch the file. He is in the Netherlands this week, however, and World Energy GH2 posted a photo of Furey with members of their company.

Why Newfoundland?

The rocky island in the North Atlantic is far from the only windy place in the world, but Parsons said there's been interest in working with the province for a combination of factors — including ice-free ports, availability of Crown land and a world-class labour force.

"It's a pretty big globe," he said. "We need to explain to people what we have to offer."

He said the province's booth at the conference has been busy, with delegates engaging in conversations with resource companies and different European ports.

"It's basically a sales pitch that's going on here," he said. "Our job is to sell Newfoundland and Labrador as an economic opportunity.… Sell, sell, sell is what we're doing."

Read more from CBC Newfoundland and Labrador