Halifax, Nova Scotia–St. John’s, NL – Newfoundland & Labrador (NL) has the potential to become a major producer of hydrogen to serve domestic demand across the Atlantic region as well as for export to international markets, according to a newly released report, A Feasibility Study of Hydrogen Production, Storage, Distribution, and Use in Newfoundland & Labrador.
The study was coordinated by OERA (Offshore Energy Research Association) and conducted by Zen and the Art of Clean Energy Solutions with support from Dunsky Energy Consulting, Redrock Power Systems, the Newfoundland & Labrador Environmental Industry Association (NEIA), as well as from Natural Resources Canada (NRCan), which invested $100,000. It looked at the role hydrogen could play in a low carbon future in NL and the broader Atlantic market, and found that developing hydrogen production in Newfoundland & Labrador and attracting new industry could result in new green jobs and a hydrogen sector in the province valued at over $11 billion per year by 2050.
The study provides a technical and economic assessment of the role hydrogen could play in Newfoundland & Labrador’s energy system transition. It explores the opportunities and challenges hydrogen production, storage, distribution, and use could create for the province while also looking at how NL could interact with the rest of Atlantic Canada in relation to hydrogen. A number of individuals from almost 40 organizations provided input to the study by participating in surveys and virtual workshops, and individual interviews.
Other key findings of the study include:
- Low-carbon intensity hydrogen produced in NL could contribute to meeting decarbonization targets across the Atlantic region.
- NL is strategically positioned to establish a hydrogen export market to Europe that could generate significant jobs and economic growth for the region.
- Local demand for hydrogen is projected to be lower in NL than in other Atlantic provinces due to opportunities for direct electrification.
The Newfoundland & Labrador hydrogen feasibility study builds on an earlier study of the three Maritime provinces, Net-Zero Future: A Feasibility Study of Hydrogen Production, Storage, Distribution and Use in The Maritimes, released in October 2020. The release of the NL study means there is now a complete Atlantic regional study of how hydrogen could contribute to the region’s energy, climate and economic future.
The Hydrogen Strategy for Canada, which was released in December 2020, highlighted the need to complement the broad analysis and findings for the entire country with a series of regional blueprints that look at the more regionally specific opportunities and challenges that hydrogen can present. When taken together, the Maritimes hydrogen study and the Newfoundland hydrogen study released today form the foundation of a regional blueprint for Atlantic Canada and will position the region to benefit from the economic and environmental opportunities that hydrogen can present on the path to net-zero.
“This study is one of the ways OERA is exploring what the Atlantic region’s energy future might look like and how we can create new opportunities as we work to achieve net-zero GHG emissions by 2050. The findings detailed in the report show that Newfoundland & Labrador could benefit significantly from developing hydrogen production, storage, distribution, and use. It also finds there is substantial potential for the entire region to gain through cooperation and collaboration related to hydrogen.”
– Alisdair McLean, Executive Director, OERA
“Hydrogen’s moment has come. It’s a game-changing opportunity for our Province to create green jobs, grow our economy and reach our climate goals. Newfoundland and Labrador will lead in low-carbon hydrogen production, using our hydroelectric resources and the strength of our workers to do it. This is how we get to net-zero by 2050.”
– The Honourable Seamus O’Regan Jr., Minister of Natural Resources
“Newfoundland & Labrador can be a leading renewable hydrogen producer in Canada, leveraging hydroelectric resources and unlocking the significant wind capacity in the region. The province is strategically positioned for export to Europe and the Maritime provinces. Developing a hydrogen economy in Atlantic Canada will bring jobs, economic growth, and environmental benefits to the region.”
– Sabina Russell, Principal, Zen Clean Energy Solutions
“This research confirms that the production of hydrogen has enormous economic growth and diversification potential for Newfoundland and Labrador. NEIA looks forward to working with its public and private sector partners to help foster the growth of this industry within our province.”
– Kieran Hanley, Executive Director, Newfoundland & Labrador Environmental Industry Association (NEIA)