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Abraxas Power and EDF Group to jointly develop green hydrogen project in Newfoundland

| By Mary Bailey

Abraxas Power Corp. (Toronto, Ont., Canada) and EDF Group (Paris, France), a key player in the energy transition and a world leader in low-carbon energy, are pleased to announce they have entered into strategic development agreements to jointly develop the Exploits Valley Renewable Energy Corporation (EVREC) green hydrogen and ammonia project in Central Newfoundland.

EVREC is a Power-to-X (P2X) project that is expected to include up to 3+ gigawatts (GW) of onshore wind capacity with associated energy and molecular storage to power behind-the-meter green hydrogen (H2) and green ammonia (NH3) production. The Project anticipates generating ~200,000 tons of green H2 and ~1,000,000 tons of green NH3 annually. EVREC aims to have its own dedicated port infrastructure to export its products to global markets.

Through these agreements, Abraxas and EDF, as equity partners, will develop the project with the objective to reach a final investment decision (FID) in 2026. Construction is expected to take place from 2026 through 2030.

Colter Eadie, CEO of Abraxas and EVREC said, “We are thrilled to announce this transaction with EDF as we continue to advance the development of the EVREC project. The arrangements with EDF further support our commitment to advancing the energy transition and supporting Newfoundland and Labrador’s green future. With the global experience of one of the world’s largest energy companies, we are well-positioned to move forward with a project that is not only expected to drive economic growth in the region but is also expected to make a significant impact on reducing carbon emissions. EVREC represents a transformative step towards a sustainable energy economy, and we are excited to lead the way in delivering green hydrogen and ammonia to global markets, creating lasting benefits for Newfoundlanders and the environment.”

Beatrice Buffon, Group Senior Executive Vice-President, EDF International Division, CEO of EDF Renewables commented, “We are proud to join our partner Abraxas within the EVREC Project which demonstrates strong competitive advantages in the global green hydrogen and ammonia market. With its Hydrogen Plan, EDF is supporting the energy transition with decarbonization solutions in the sectors that emit the most CO2.  EDF has been one of the leading renewable energy companies in North America for more than 35 years and has been present in Canada since 2008. We look forward to cooperating with all Canadian stakeholders and our partner to bring this project to fruition.”

Once operational, it is anticipated that the Project will offset over 1.5 million tonnes of CO2 every year1, and contribute over CAD$5 billion to Newfoundlanders through remittances to the provincial budget as well as various stakeholder benefit agreements over the life of the project. The Project is expected to add hundreds of new, highly skilled and long-term jobs to central Newfoundland.