The province has laid out the financial give-and-take for potential wind-to-hydrogen projects.
The fiscal framework is based on the premise that the province makes money when the companies do, as well as through corporate taxes.
It includes initial land reserve and lease fees for successful bidders, with water royalties kicking in once a company recovers its investment costs.
Energy Minister Andrew Parsons acknowledged comparisons to the offshore royalty regime, but noted one very important difference.
He says while the new industry promises to provide revenues in the billions of dollars, it’s only “construction and job heavy” off the top, offering fewer jobs over time, unlike what Newfoundlanders and Labradorians have become accustomed to in the offshore.
(Areas of interest, western and eastern NL.)
The province has also extended the deadline to March 23 for bids on Crown land available for potential projects.
It’s estimated several dozen companies are interested in submitting bids.
The contenders are expected to be separated from the pretenders by late May.
