McDermott secures contract for $8.7bn hydrogen and ammonia facility

Energy-focused engineering firm McDermott will support the construction of what is believed to be Canada’s first green hydrogen and ammonia production facility.

The US-based company today (17^th June) said it was awarded a front-end engineering and design (FEED) contract from Abraxas Power Corporation for the Exploits Valley Renewable Energy Corporation (EVREC) project located in Central Newfoundland.

Additionally, McDermott was also awarded an engineering, procurement, and construction (EPC) agreement to support the $8.7bn green hydrogen and ammonia project.

Once complete, the project will be made up of an up to 530-turbine wind farm with the capability to generate 3.5 gigawatts of electricity and 150 megawatts solar photovoltaic.

In turn, this will support the production of around 450 tonnes of hydrogen per day (165 kilotonnes per annum) and 500 metric tonnes per day of ammonia.

Rob Shaul, Senior Vice-President of Low Carbon Solutions at McDermott, described the agreement as a testament to McDermott’s delivery and installation services.

He continued, “Our century of experience, from concept to completion, and integrated delivery model mean we can offer Abraxas a repeatable modular implementation solution that is expected to drive cost savings, reduce risk, and provide quality assurance.”

The work will be led from McDermott’s Houston office with support from its Gurgaon office in India.

To date, McDermott has executed more than 300 hydrogen projects.