McDermott Awarded ECI Agreement for Canada's First Green Hydrogen Facility
Key Ideas
- McDermott has secured an ECI agreement for the EVREC project in Newfoundland, Canada, involving the development of a green hydrogen and ammonia production facility.
- The project includes a 530-turbine wind farm, 3.5 GW of electricity generation capacity, and 150 MW of solar PV, with the ability to produce 165kta of hydrogen.
- The agreement signifies McDermott's expertise in low carbon solutions and modular implementation, aiming to drive cost savings, reduce risks, and ensure quality assurance.
- McDermott will provide FEED, EPC planning, and cost estimates for hydrogen production, ammonia processing, and product storage, with operations led from Houston and India.
McDermott has been awarded an Early Contractor Involvement (ECI) agreement from Abraxas Power Corporation for the Exploits Valley Renewable Energy Corporation (EVREC) project in Central Newfoundland, Canada. This project marks Canada's first commercial green hydrogen and ammonia production facility and involves the development of a large-scale renewable energy complex. The facility will feature a 530-turbine wind farm capable of generating 3.5 gigawatts of electricity, along with 150 megawatts of solar photo voltaic (PV) capacity. The plant is designed to produce 165 kilotons per annum (kta) of hydrogen and 5000 metric tons per day of ammonia.
McDermott's Senior Vice President, Low Carbon Solutions, emphasized the company's industry-leading delivery and installation expertise, highlighting the potential for cost savings, risk reduction, and quality assurance through their modular implementation solutions. The agreement entails McDermott providing front-end engineering design (FEED), engineering, procurement, and construction (EPC) planning services, as well as open book EPC cost estimates for the hydrogen and ammonia production facilities.
The project will be managed from McDermott's Houston office with support from their Gurgaon office in India. McDermott is a prominent provider of engineering and construction solutions in the energy sector, with a focus on sustainable energy infrastructure development. Despite the potential uncertainties and risks associated with such projects, the company's commitment to advancing global energy infrastructure in a responsible and innovative manner is evident in this collaboration. The agreement underscores McDermott's dedication to the energy transition and the promotion of green hydrogen as a key component of a more sustainable future.
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