Contract awarded for Canada’s first commercial green ammonia project

Abraxas Power Corporation has awarded US engineering company McDermott an early contractor involvement agreement for a green hydrogen and ammonia project, which will feature a 3.5GW wind farm.

The Evrec project will comprise a 3.5GW wind farm and a 150MW solar PV array (pic credit: Andriy Onufriyenko/Moment via Getty Images)

The Exploits Valley Renewable Energy Corporation (Evrec) project in central Newfoundland, Canada’s first commercial green hydrogen and ammonia production facility, is expected to cost C$12 billion (US$8.8 billion).

The project includes a 3.5GW wind farm with up to 530 wind turbines and a 150MW solar PV array. Its daily production is estimated at 165,000 tonnes for hydrogen and 5,000 tonnes for ammonia.

Under the scope of the agreement, US-based McDermott will provide front-end engineering design, engineering, procurement and construction planning services. 

Newfoundland and Labrador granted Evrec a lease for 300km2 of crown lands on the site of a closed forestry concern, which includes infrastructure it plans to repurpose. 

The lease was awarded after a tender process, which closed in March 2023, attracted 24 bids from 19 companies.

The project will have dedicated port infrastructure to export its products to global markets. An existing port at Botwood will be restored to its historical working condition to allow for inbound and outbound shipments. 

During the construction phase, a section of the port previously used by Abitibi will be upgraded to receive wind turbines and other materials required for the initial build.