The environment and energy arm of South Korean conglomerate SK Group has agreed to acquire a minority stake in a green hydrogen project in the Canadian province of Newfoundland and Labrador that will rely on large volumes of wind power generation.
SK ecoplant announced today it has signed a deal with World Energy GH2 to buy an initial 20% stake in the first phase of Project Nujio’qonik in exchange for an investment of USD 50 million (EUR 46.2m), the company’s first in a wind-to-green-hydrogen project globally.
World Energy GH2 is developing Canada’s first commercial-scale green hydrogen and ammonia production facility, with plans to install 1.5 GW of electrolysers fed with electricity from more than 3 GW of wind capacity. This is estimated to be enough to produce some 250,000 tonnes of hydrogen a year.
According to information on the project website, the first phase of the scheme envisages the construction of 2 GW of onshore wind parks in Port au Port and Codroy, along with a hydrogen processing facility in the Stephenville region. Another gigawatt of wind power generation is to be added in the second phase, while the third one will evaluate the potential for further expansion.
“Project Nujio’qonik has world-class wind, abundant fresh water, a deep-sea port with close proximity to Europe, strong First Nations and community support, and support at all levels of government. Our investment in this project is a step toward producing first green hydrogen and ammonia in 2025 and taking a leadership position in the fight against climate change,” stated Kyung-il Park, CEO of SK ecoplant.
The Korean firm is not only experienced in green hydrogen development but also in wind power generation. It is currently developing a 2.6-GW offshore wind project and its subsidiary SK oceanplant specialises in the supply of sub-structures for such installations. At the same time, the parent group is an investor in US hydrogen expert Plug Power Inc.
(USD 1.0 = EUR 0.925)