Canada’s Project Nujio’qonik wins government credit facility

The Canadian government has signed a ‘definitive agreement’ for a C$128 million (US$95 million) credit facility to support World Energy GH2 in developing the country’s first commercial-scale green hydrogen and ammonia facility.

by Janet Wood 14 March 2024

The Canadian government will support World Energy GH2’s first commercial-scale green hydrogen and ammonia facility with a C$128 million credit facility (pic credit: Getty Images)

The Export Development Canada (EDC) credit facility will support the development of Project Nujio’qonik, on the west coast of Newfoundland and Labrador, through to financial close of long-term financing.

Canada said the agreement demonstrated “continuing material support” of the Canada-Germany hydrogen alliance signed between the two countries at Project Nujio’qonik’s site in August 2022.  

Project Nujio’qonik is a consortium of partners advancing a ‘cost-effective’ wind power-to-green hydrogen/ammonia production facility that will draw on 3GW of wind energy in a region with one of the world's best wind resources. 

Once complete, the project will produce 210,000 tonnes of green hydrogen per year – or 1.2 million tonnes of green ammonia, with the first phase expected to produce around 400,000t of green ammonia for export. 

Kyung-il Park, president and chief executive of SK Ecoplant, an investor in Project Nujio’qonik, said: “Thanks to this commitment from the federal government, we expect our project to move more quickly into the next phase, such as Feed (front end engineering design) execution and long-lead item orders.”