McDermott secures early contractor role in Canada’s first commercial green hydrogen project

McDermott International has been awarded an Early Contractor Involvement (ECI) agreement from Abraxas Power Corporation for the pioneering Exploits Valley Renewable Energy Corporation (EVREC) project in Central Newfoundland. This milestone project, representing Canada’s first commercial green hydrogen and ammonia production facility, is set to include a significant renewable energy installation featuring up to 530 wind turbines and a 150-megawatt solar photovoltaic system.

The EVREC project, valued at approximately $280 million, aims to generate 3.5 gigawatts (GW) of electricity. It will prominently feature the development of extensive renewable energy sources and the production capabilities for 165kta of hydrogen and 5,000 metric tons per day of ammonia. McDermott’s involvement will include front-end engineering design (FEED), engineering, procurement, and construction (EPC) execution planning services, focusing on the hydrogen production, ammonia processing, and product storage aspects of the project.

The agreement underlines McDermott’s expertise in delivering complex energy transition projects. According to Rob Shaul, Senior Vice President, Low Carbon Solutions at McDermott, “Our century of experience and integrated delivery model means we can offer Abraxas a repeatable modular implementation solution that is expected to drive cost savings, reduce risk and provide quality assurance.” This project is crucial for establishing a renewable energy benchmark in Canada, particularly in leveraging the country’s vast renewable resources for sustainable hydrogen and ammonia production.

This strategic partnership between McDermott and Abraxas Power Corporation is expected to set a precedent for future renewable energy projects across North America. It emphasizes the increasing shift towards green energy solutions and the critical role of innovative technology in achieving environmental sustainability goals.