McDermott gets job on Abraxas' green hydrogen project in Canada

US engineering company McDermott has sealed an early contractor involvement (ECI) agreement on a project touted as one of Canada's first commercial green hydrogen and ammonia production facilities that will be built in Central Newfoundland.

The agreement was awarded by Canadian energy transition developer Abraxas Power Corporation and concerns the Exploits Valley Renewable Energy Corporation (EVREC) project which envisages the deployment of a 3.5-GW wind farm with up to 530 turbines and 150-MW solar site, as well as molecular and energy storage, and associated port infrastructure.

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McDermott has been tapped to provide front-end engineering design (FEED), engineering, procurement and construction (EPC) execution planning services, and open book EPC cost estimate for the hydrogen production, ammonia processing and product storage portion of the project, the parties said in separate press statements.

The planned facility is targeting a production capacity of 165 kilotonnes per annum of hydrogen and 5,000 metric tonnes per day of ammonia.

EVREC was awarded by the province of Newfoundland and Labrador, securing over 300 square kilometres of crown lands. It was one of four wind-to-hydrogen schemes to receive Crown land application approval from the Newfoundland & Labrador Ministry of Industry, Energy and Technology in August 2023 along with EverWind NL Company; Toqlukuti’k Wind and Hydrogen Ltd (ABO); and World Energy GH2 Inc.

EVREC's total capital investment is expected to be CAD 12 billion (USD 8.72bn/EUR 8.16bn), according to the project’s website.

(CAD 1 = USD 0.727/EUR 0.680)