Bear Head receives environmental approval for hydrogen production

Bear Head Energy Inc. has received environmental assessment approval to move forward with a green hydrogen and ammonia production, storage and loading facility in Point Tupper, Nova Scotia, formerly an LNG export facility.

The project was given the green light by provincial Minister Timothy Halman of the Nova Scotia Environment and Climate Change.

The Canada east coast project originally had planned to transport liquefied natural gas to overseas markets. However, when Houston-based Buckeye Partners LP last May completed its takeover of the Bear Head LNG facility, it announced changes.

Sponsors predicted there could be 40-60 export cargoes/year when markets mature for hydrogen. Green hydrogen and ammonia use renewable energy in their manufacturing processes to reduce greenhouse gas emissions.

Bear Head is permitted for up to 2 GW of hydrogen electrolytes, which could produce up to 350,000 tons/year of hydrogen and 2 million tons/year of ammonia, the company noted. The project is to be developed in two phases, with an expected completion in 2028.

The Canadian government has enacted policies to incentivize companies to transition from fossil fuels. Among other things, the Clean Hydrogen Investment Tax Credit program provides companies with a 40% credit for clean hydrogen and a 30% credit for clean technology. Prime Minister Justin Trudeau also is advocating for more energy transition projects.