McDermott Awarded ECI Agreement for Canada's First Green Hydrogen and Ammonia Facility
Key Ideas
  • McDermott secures an Early Contractor Involvement agreement for Canada's inaugural green hydrogen and ammonia production plant in Central Newfoundland.
  • The project encompasses a 530-turbine wind farm capable of generating 3.5 GW of electricity, a 150 MW solar PV system, and the capacity to produce 165kta of hydrogen and 5000 metric tons per day of ammonia.
  • McDermott's expertise in delivery and installation, spanning a century, along with their integrated delivery model, is set to drive cost efficiencies, mitigate risks, and ensure quality assurance for Abraxas Power Corporation.
  • The agreement outlines McDermott's responsibilities in providing services such as front-end engineering design, engineering, procurement, and construction planning for the hydrogen and ammonia production segments of the EVREC project.
McDermott, a prominent player in the energy sector, has been granted an Early Contractor Involvement (ECI) agreement by Abraxas Power Corporation for the Exploits Valley Renewable Energy Corporation (EVREC) project situated in Central Newfoundland, Canada. This milestone project marks the inauguration of Canada's premier commercial green hydrogen and ammonia production facility. The initiative involves establishing a vast 530-turbine wind farm capable of producing 3.5 gigawatts of electricity, alongside a 150-megawatt solar photo voltaic (PV) system. The envisioned facility is designed to have the capacity to generate 165 kilotons per annum of hydrogen and a substantial 5000 metric tons per day of ammonia. Rob Shaul, the Senior Vice President of McDermott's Low Carbon Solutions division, expressed confidence in the company's proficiency in delivery and installation owing to their extensive experience and comprehensive capabilities across the energy transformation landscape. McDermott's approach is centered on offering Abraxas Power Corporation a scalable modular execution strategy that is anticipated to yield cost advantages, diminish risks, and ensure top-notch quality. As part of the agreement, McDermott is tasked with providing front-end engineering design (FEED), engineering, procurement, and construction (EPC) execution planning services, as well as an open book EPC cost estimate for the hydrogen production, ammonia processing, and product storage components of the project. The project operations will be overseen from McDermott's Houston office with supplemental support from their Gurgaon office in India. This significant development heralds a new era in sustainable energy production in Canada, positioning McDermott as a key player in driving the adoption of green hydrogen and ammonia technologies.
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