EverWind Completes Clean Hydrogen Investment Tax Credit Submission and Carbon Intensity Validation

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Jan 09, 2025, 09:30 ET

Third party validated carbon intensity modelling supports 99% emissions reductions compared to fossil-fuel based hydrogen, confirming eligibility for 40% Clean Hydrogen ITC

HALIFAX, NS, Jan. 9, 2025 /CNW/ - EverWind, North America's leading green hydrogen developer, has successfully completed and submitted the Clean Hydrogen Investment Tax Credit (CH ITC) Clean Hydrogen Project Property Plan for EverWind's "Point Tupper Green Ammonia Project Phase I" to Natural Resources Canada (NRCan). Upon confirmation, the Point Tupper project is expected to be the first project in Canada to secure the CH ITC, confirming eligibility for maximum credit value based on independently validated carbon intensity of clean hydrogen.

Finalizing validated carbon intensity modelling and the submission of the Clean Hydrogen Project plan will enable EverWind to access the highest tier of the CH ITC, representing 40% of eligible capital expenditures based on a projected carbon intensity of less than 0.75kg CO2 per kg of green hydrogen. These investment tax credits are critical to ensuring that Canada is able to provide the most cost-efficient, greenest hydrogen globally and provides a globally competitive cost for early movers that will drive the cost down over time.

The submission leverages a recently completed front-end engineering design (FEED) study and includes an assessment of the project's expected carbon intensity using the Fuel Life Cycle Assessment Model. These key deliverables ensure compliance with stringent regulatory standards for clean hydrogen production. Validation of life-cycle carbon intensity (CI) calculations was achieved in collaboration with RWDI, a world-renowned engineering and environmental consultancy, and calculations conducted by Deloitte,Canada, a leader in carbon intensity analysis. The results confirm that EverWind's project will achieve an industry-leading carbon reduction of over 99% compared to fossil-fuel based hydrogen production.

RWDI, known for its expertise in climate and performance engineering, performed the validation of the Project. "We are pleased to have worked with EverWind to validate the expected very low carbon intensity and supporting Project documentation" said Mark Vanderheyden, Chief Operating Officer at RWDI. "Our cross-disciplinary team of process modelling, validation, and life cycle assessment experts conducted an independent review of EverWind's project, completing one of the first validations to support the Clean Hydrogen Investment Tax Credit. This achievement underscores the importance of robust and transparent validation processes in advancing the green energy transition."

Deloitte Canada conducted the carbon intensity calculations, providing a critical foundation for the validation. Nathan Steeghs, Partner and National Climate Lead at Deloitte, commented, "We're proud to provide services to EverWind necessary to complete its clean hydrogen project. EverWind is supporting global decarbonization through the construction of new renewable energy projects to power its hydrogen production. Projects like this will contribute to decarbonization in Canada and beyond.."

Trent Vichie, CEO of EverWind, emphasized the significance of this milestone: "Validating the carbon reduction potential of our project is a critical step in delivering on our promise of meaningful decarbonization. As Canada's first green hydrogen project to achieve this level of rigor and transparency, we are proud to lead the way in setting new standards for clean energy development. This achievement not only reinforces our commitment to a net-zero future but also demonstrates the importance of collaborative efforts in addressing the global climate challenge."

With confirmation of ITC eligibility at 40%, EverWind is well positioned in a competitive global landscape to finalize binding offtake agreements and begin construction on its multi-billion dollar production and transportation facility in 2025.

About EverWind Fuels
EverWind is North America's leading independent green hydrogen developer. EverWind received the first Environmental Approval in North America for a large-scale green hydrogen project, and is well progressed in design, engineering, and development for the first phase of both its green energy generation projects and the production facility which will convert this energy into green hydrogen and green ammonia. EverWind owns and operates the deepest ice-free berth on the East Coast of North America, with world-class access to rail, roads, and pipelines. Our safety-first culture, evidenced through 19 years without a lost time injury, reflects a highly skilled and extensively certified workforce.

EverWind has three First Nations equity partners and is a champion for meaningful engagement with Rightsholders and the advancement of social and economic reconciliation. At a local level, the Company works closely with municipalities and stakeholder organizations.

EverWind is concurrently developing a world-scale green fuels project on the Burin Peninsula in Newfoundland & Labrador. This project will be critical in delivering the scale and competitive wind resource required to support the green energy transition ambitions of some of the largest industrial companies in the world. EverWind continues to engage with communities and stakeholders on the Burin Peninsula and work closely with the Government of Newfoundland and Labrador to ensure the economic, social, and environmental prosperity of the region for generations to come.

QUICK FACTS

Since 2022, EverWind has invested over $200M in infrastructure, engineering and development work at projects sites in Point Tupper, Nova Scotia and on the Burin Peninsula of Newfoundland & Labrador
EverWind's capital expenditures for Point Tupper Phase 1 and 2 are estimated to reach $3.4B and $10.3B respectively, while the Burin Peninsula Phase 1 will represent an investment of approximately $16B.
EverWind has achieved environmental approval on its renewable energy generating assets in Nova Scotia, including Phase 1 wind farms Windy Ridge, Bear Lake and Kmtnuk, as well as the hydrogen production plant in Nova Scotia, while additional Environmental Assessment registrations have been submitted in Newfoundland & Labrador.
In June 2024, Canada achieved Royal Assent of Bill C-69, the budget implementation legislation that includes investment attraction measures critical to ensuring Canada maintains an edge in the fiercely competitive global clean energy space. These include Investment Tax Credits of up to 40% on eligible clean hydrogen equipment and 15% for clean ammonia infrastructure, based on achieving validated and verified carbon intensity reductions.