Another setback hits N.L.’s once touted wind-to-hydrogen industry

Newfoundland and Labrador's once highly touted wind-to-hydrogen industry was dealt another blow on Thursday.

The PC government has signalled that its patience has run out with some of the project proponents, stripping World Energy GH2, EveryWind and Toqlukuti’k Wind and Hydrogen of their Crown land reserves for not paying their land reserve fees.

“So the industry is at a stalling point right now,” Energy Minister Lloyd Parrot told reporters on Thursday.

“There was a contract negotiator for the land reserve fees. They had an obligation to pay, and they didn't pay,” he said.

Collection services are now responsible for acquiring the more than $34 million in unpaid fees.

The government extended the land reserve permits three times over the last three years to give the companies time to advance their projects, but Parrot said the hydrogen green fuels market has not developed as many had expected.

“There was a time frame when wind-hydrogen was a big thing globally. Everyone jumped on quick and moved it as fast as they could, and unfortunately, it didn't work out that way,” he said.

Now, by re-opening those Crown land reserves, Parrot said there is an opportunity for other industries to move in.

“This province has never before been open for business the way we are right now. We want mining, we want wind, we want electricity, but we want good, responsible partners to work with us, and this is clearly not an example of that,” he said.

In the meantime, North Atlantic’s project near Arnold’s Cove and Exploits Valley Renewable Energy Corporation in central Newfoundland are progressing.

“We believe that they are on the cusp of being successful. These other companies have not only not paid their bills, but they haven't moved the projects forward,” Parrot said.

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