McDermott has secured an Early Contractor Involvement (ECI) agreement from Abraxas Power Corporation for the Exploits Valley Renewable Energy Corporation (EVREC) project in Central Newfoundland.
This venture marks Canada’s first commercial green hydrogen and ammonia production facility.
The EVREC project is ambitious, featuring a 530-turbine wind farm capable of generating 3.5 gigawatts (GW) of electricity and a 150 megawatt (MW) solar photovoltaic (PV) installation. The facility aims to produce 165,000 tonnes per annum (tpa) of hydrogen and 5,000 metric tons per day of ammonia. This large-scale integration of renewable energy sources underscores the project’s potential impact on Canada’s green energy landscape.
McDermott’s role encompasses front-end engineering design (FEED), procurement, and construction (EPC) execution planning services, along with an open book EPC cost estimate for the hydrogen production, ammonia processing, and storage components of the project. Rob Shaul, McDermott’s Senior Vice President of Low Carbon Solutions, emphasized the company’s extensive experience and integrated delivery model, which he claims will drive cost savings, reduce risks, and ensure quality assurance.
The success of the EVREC project is pivotal for Canada’s position in the global hydrogen economy. As the country’s first commercial green hydrogen and ammonia production facility, it sets a precedent for future projects. The facility’s ability to integrate significant wind and solar capacities into hydrogen production could serve as a model for other regions.
However, the project’s reliance on large-scale renewable infrastructure also highlights potential challenges, such as the intermittency of renewable energy sources and the need for efficient storage solutions. These factors will significantly influence the project’s overall success and its replicability.
McDermott’s involvement in the EVREC project signifies a step forward in the energy transition, yet it is just one piece of the puzzle. The project’s success will depend on various factors, including technological advancements, regulatory support, and market dynamics. Moreover, the global shift towards green hydrogen requires ongoing innovation and collaboration across industries.
The collaboration between McDermott and Abraxas Power Corporation is promising, but it is essential to maintain a critical perspective. The hydrogen sector’s rapid evolution means that staying ahead requires not only robust technology and cost-efficiency but also agility and adaptability to new challenges and opportunities.
