Bear Head Energy Inc. has received environmental assessment approval to move forward with a green hydrogen and ammonia production, storage and loading facility in Point Tupper, Nova Scotia, formerly an LNG export facility.
The project was given the green light by provincial Minister Timothy Halman of the Nova Scotia Environment and Climate Change.
“Following a review of the information provided by Bear Head Energy Inc. and the information provided by the Mi’kmaq of Nova Scotia, and the public during consultation on the environmental assessment, I am satisfied that any adverse effects or significant environmental effects of the undertaking can be adequately mitigated through compliance” with some conditions, Halman stated in the approval last week.
“We believe green hydrogen and ammonia will play a fundamental role in facilitating the global energy transition, and this approval demonstrates that Canada and Nova Scotia are at the forefront of making this a reality,” Bear Head’s Pau MacLean, managing director, said.
The Canada east coast project originally had planned to transport liquefied natural gas to overseas markets. However, when Houston-based Buckeye Partners LP last May completed its takeover of the Bear Head LNG facility, it announced changes.
Buckeye outlined plans last year to remake the dormant gas export project into “a large-scale green hydrogen hub.” Sponsors predicted there could be 40-60 export cargoes/year when markets mature for hydrogen. Green hydrogen and ammonia use renewable energy in their manufacturing processes to reduce greenhouse gas emissions.
Bear Head is permitted for up to 2 GW of hydrogen electrolytes, which could produce up to 350,000 tons/year of hydrogen and 2 million tons/year of ammonia, the company noted. The project is to be developed in two phases, with an expected completion in 2028.
The Canadian government has enacted policies to incentivize companies to transition from fossil fuels. Among other things, the CleanHydrogen Investment Tax Credit program provides companies with a 40% credit for clean hydrogen and a 30% credit for clean technology. Prime Minister Justin Trudeau also is advocating for more energy transition projects.
“Through smart initiatives like the Clean Hydrogen Investment Tax Credit, the Government of Canada is acting on climate change by supporting the development of a sustainable and prosperous low-carbon future,” said Cape Breton-Canso’s Mike Kelloway, who is a member of Parliament. Bear Head is owned by BAES Infrastructure, a unit of Buckeye, whose strategy is to transition projects from fossil-based fuels to renewable sources. In addition to Bear Head, BAES is developing a low carbon and ammonia hub in South Texas. Swift Current Energy, a solar and wind energy project developer headquartered in Boston, also falls under the BAES umbrella.
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