The province’s energy minister is once again offering assurances that NL taxpayers will not be left “holding the bag” if hydrogen production fails to take off as anticipated.
The Globe and Mail recently reported that Canada’s efforts to establish a green hydrogen supply chain with Europe have been delayed by “a supply-demand mismatch.”
The article outlines some of the difficulties being faced in the industry, including the fact that European infrastructure is “far from ready,” and citing global inflation among the challenges making the country’s goal to export hydrogen to Germany by 2025 far less likely.
The province has put a lot of effort into setting up the regulatory regime necessary to develop wind energy to fuel hydrogen production in the province with a number of projects having received environmental approval.
Photo via Gov NL Hydrogen Development Action Plan
Minister Andrew Parsons admits he thought the 2025 timeline was a bit ambitious, but he remains bullish about the potential here.
“If we hadn’t moved at all, you’d have people saying ‘look there’s a demand over there, and you guys aren’t ready to match it,’ so you’re kind of damned if you do, damned if you don’t,” he said.
Parsons says the work continues, adding a number of proponents have secured MOUs for development.
As for those who have raised concerns about whether the province will be on the hook if, or when, companies fold or wrap up operations, Parsons says that won’t happen.
“Two words I’d use there: foolishness and false.”
He says the companies are paying for the land they use.
“If the time comes when any of those companies don’t want to continue to use it, they will have to relinquish the land, they will have to pay the decommissioning cost of removing the equipment. We have not lost on an investment, because we haven’t invested, so no different than anyone out there that is availing of Crown land.”
