The federal Liberal government has announced a $125 million loan for a proposed green hydrogen facility in Nova Scotia’s Canso Strait region.
The loan will be used to help EverWind Fuels, the backer of the project, further develop the design of the hydrogen facility at the Tupper Point Industrial Park in Richmond County. The company has invested $200 million in the project, which is expected to bring thousands of jobs to Cape Breton and Nova Scotia.
The plan is to use wind and solar power to extract hydrogen from nearby Lake Landry water and convert the hydrogen into energy for export.EverWind’s massive wind turbine project in Colchester County, which is in the regulatory process, along with the solar panels at the planned production facility, will produce inexpensive, green hydrogen fuel for the $3 billion project.
The federal government says the clean energy will be exported to other countries, including Germany, which has signed an agreement with Canada. Negotiations are also underway to develop a green energy storage and distribution system in Nova Scotia, but EverWind says this will be the second phase of development.
Another green hydrogen project is being proposed not far away at the Tupper Point Bear Head site. The federal government says it will also consider investing in the project, but EverWind is leading the way in terms of preparation.
“This is actually the most advanced green hydrogen project in the Western Hemisphere,” said Nova Central Liberal MP Sean Fraser.” There isn’t another project like this in the world, let alone this side of the Strait of Canso.
EverWind plans to use solar panels at its manufacturing plant and work with the government and Nova Scotia Power to deliver power from its proposed wind farm in Colchester County, about 200 kilometers away, to Tupper Point. The company will also invest in the province’s power grid, which makes green energy more expensive but still makes economic sense.
There’s a lot of investment money for green energy production, but not enough plants are in operation, Veitch said. The real problem is that green hydrogen energy is an emerging technology and government regulations haven’t kept up with demand.
“We have three investment banks working with us,” Veitch said.” That’s the least of my worries. What’s more important is getting development permits and being ready to build.
EverWind expects to make a final investment decision early in the new year, but has already begun putting money down, assuming the project will proceed.
The project is expected to create thousands of jobs and help Nova Scotia transition to a green economy.