Argentia will be 'a first mover of hydrogen' in global transition, says Deputy PM

Walking on the grounds of the port of Argentia, Deputy Prime Minister Chrystia Freeland touted Newfoundland and Labrador as being on the precipice of becoming a world leader in the global energy transition.

"The people who are here right now, you're actually at the very centre of probably the most important thing happening in the world today," Freeland told reporters and a crowd of workers Monday. "You are in the vanguard, you are so close to becoming a global hub for renewable energy, to becoming a first mover in hydrogen."

Freeland spent Monday touring the port facility, expected to become a site of hydrogen production. Hydrogen that is transitioned to ammonia will be shipped from the port to Germany in its quest to transition away from fossil fuels.

The federal finance minister said Canada has made strategic investments into green energy, citing hydrogen tax credits that could give breaks of up to 40 per cent of a project's total cost, and the federal contribution of $38 million toward the $100 million port expansion announced in July.

While the project hasn't been sanctioned yet, Freeland said she believes in its future.

"The race to build the global green economy is the most significant economic transformation in the whole world since the industrial revolution itself. And here in Canada, here in Newfoundland and Labrador, this represents an incredible economic opportunity," she said.

"In order for us to win that race, I think that we have to have conversations on the ground where the projects are."

The Port of Argentia has entered into an agreement with Pattern Energy, a U.S. based company, to use 6,000 acres of industrial and forest land owned by the port. The cost of the project is pegged at $4 billion.

Freeland was also asked for comment regarding a letter recently sent to Ottawa by Newfoundland and Labrador  Premier Andrew Furey, asking Prime Minister Justin Trudeau to pause the federal carbon tax and clean fuel regulations affecting the province.

In his letter, Furey said the regulations are increasing the cost of living and will disproportionately impact residents of Newfoundland and Labrador. The federal carbon tax, for example, will add about 17 cents per litre on the price of  gasoline and 16 cents per litre on diesel by 2030.

Freeland was careful in her answer.

"I take the concerns of the premier…very seriously. The cost of living is a real challenge here in Newfoundland and Labrador. And, you know, gas is a part of that, heating oil is a part of that," she said.

"I think it's important to recognize that the climate action incentive payments, they're gonna nake a difference...It won't solve everything, but it will make a real difference."