(Bloomberg) -- Canada’s agreement to supply Germany with green hydrogen received a boost as provincial regulators gave environmental approval to a $6 billion project that would produce the fuel in Nova Scotia.
The move clears the way for EverWind Fuels Co. to begin construction in the first half of the year, with ammonia deliveries to German utilities EON SE and Uniper SE slated to start by 2025, the company said Tuesday. The project’s first phase would produce 200,000 metric tons a year, before ramping up to full output of 1 million metric tons of green hydrogen and ammonia by 2026, the company said.
The project marks a step forward for the hydrogen supply agreement that Canadian Prime Minister Justin Trudeau and German Chancellor Olaf Scholz signed in August. Hydrogen burns hot enough to be used in steel production and is seen as a key fuel for helping curb industrial emissions.
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Green hydrogen refers to gas that’s produced by via electrolysis powered by renewable energy. EverWind said it’s applying for leases on 137,000 acres of land to develop a 2 gigawatt onshore wind farm to power the second phase of the production facility.
EverWind was founded in Halifax in February 2022 by Trent Vichie, a co-founder of Stonepeak Infrastructure Partners. The closely held firm said its $120 million in financing to date has come from Vichie’s family office, and it is working with Canadian Imperial Bank of Commerce, Citigroup Inc. and Morgan Stanley to provide additional financing.
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