Some N.L. hydrogen companies behind in bills as industry hype 'boils off'

Sarah Smellie · The Canadian Press

· Posted: Jun 12, 2025 8:29 AM EDT | Last Updated: June 12

Newfoundland and Labrador is owed millions of dollars successful fees from greenish vigor companies, underlining increasing doubts astir whether promises of large projects and multi-billion dollar investments volition cookware out.

Six companies are vying to make caller operations successful the state that would usage upwind vigor to nutrient hydrogen for exports overseas. Figures obtained by The Canadian Press uncover immoderate beryllium a corporate full of $13.7-million successful fees owed successful 2024 for the usage of Crown land.

Russell Williams, an subordinate governmental subject prof astatine Memorial University successful St. John's, said he's not surprised.

"I deliberation it highlights the grade to which the nationalist should beryllium skeptical astir megaprojects, and astir governments getting precise carried away, precise early, with the thought that determination are immense benefits from these kinds of earthy assets developments," said Williams.

However, the state insists the money volition beryllium collected.

"The provincial authorities has not written disconnected immoderate outstanding Crown onshore reserve fees and expects to cod each gross owing for these fees," said an emailed connection from Steve Crocker, curate of industry, vigor and technology.

The manufacture began paying the fees aft the provincial authorities invited companies to bid connected Crown onshore to usage for upwind vigor projects successful December 2022. By paying the fees, the companies person the enactment to lease the onshore if they take to determination guardant with projects.

But it's not wide which developments volition proceed, adjacent though the companies person present reserved astir 3,944 quadrate kilometres of Crown land.

Executives from the six companies told an vigor league successful St. John's past week that it's been pugnacious to find buyers connected the overseas marketplace to marque their projects viable.

Some companies said they were considering different options successful the meantime, including an anticipated telephone for renewable vigor for the section grid successful Newfoundland and Labrador.

"In 2021, 2022 the satellite thought everything was going to beryllium moving connected hydrogen," Karlis Povisils, with Copenhagen Infrastructure Partners, told reporters during the conference. "I deliberation the hype has boiled off, and that's a steadfast thing. The players that are near are the ones that are superior and committed."

The companies owed a corporate full of astir $22.1-million successful Crown onshore reserve fees for 2024, Crocker said. The state collected conscionable $8.4 million, according to figures obtained done entree to accusation legislation.

In 2023, the state received $5,491,316 successful Crown onshore reserve fees — precisely the magnitude it was owed, the section confirmed.

Only 3 of the six companies confirmed to the Canadian Press their fees were up to date: North Atlantic, Pattern Energy, and the Exploits Valley Renewable Energy Corporation, oregon EVREC.

Other companies weren't arsenic clear.

A spokesperson for World Energy GH2, which projected a $16-billion wind-powered hydrogen cognition successful occidental Newfoundland, said the institution has paid "millions" successful Crown onshore reserve fees. She did not corroborate if it had paid each of its fees for 2024.

"We proceed to reserve Crown lands, and incur fees related to our reservation, and volition proceed to work our obligations," Laura Barron said successful an email.

A spokesperson for EverWind, which has projected wind-to-hydrogen projects successful Newfoundland and Nova Scotia, said the institution has paid $5.6-million successful reserve fees, "but we cannot remark further arsenic we are successful ongoing onshore preservation discussions with the province."

EverWind Fuels is 1 of 2 companies that person asked the state to trim the magnitude of onshore held successful reserve for its projected development. Using the reduced onshore reserve, the institution would person owed much than $8-million successful 2024.

ABO Energy, which is moving with Copenhagen Infrastructure Partners connected a task successful eastbound Newfoundland, has besides reduced its Crown onshore reserve. The institution said it is moving with the authorities "to guarantee compliance" with reserve interest conditions.

"And indeed, we are moving to make the ecosystem that this nascent manufacture demands," said spokesperson Heidi Kirby successful an email.

Tom Cooper, a concern prof astatine Memorial University, said forgoing the onshore fees could beryllium a mode for the state to money the developments, "without handing implicit hard cash."

Williams added that the fees are rather tiny compared to the outgo of immoderate of the projects. He worries the provincial authorities undervalued its resources and got swept up successful "pie-in-the-sky" promises of megaprojects that would nutrient jobs.

"One of the things that ever gets mislaid successful those calculations is the nationalist interest," Williams said. "The nationalist involvement present is what benignant of royalties and revenues was the state going to get ... and it looks like, unless thing changes, the benefits are tiny and successful arrears."

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