McDermott has been selected by Abraxas Power to carry out engineering and construction planning services for an $8.7 billion green hydrogen and ammonia production project in Canada.

The engineering and construction firm on June 17 said it was awarded an early contractor agreement for the Exploits Valley Renewable Energy Corp. project in Central Newfoundland. The project, expected to become the first commercial facility of its kind for Canada, will use wind and solar energy to produce hydrogen and ammonia.

As part of the agreement, McDermott will provide the FEED, engineering, procurement and construction (EPC) execution planning services and open book EPC cost estimate for the hydrogen production, ammonia processing and product storage portion of the project, according to a news release.

“Our century of experience, from concept to completion, and integrated delivery model, means we can offer Abraxas a repeatable modular implementation solution that is expected to drive cost savings, reduce risk and provide quality assurance,” Rob Shaul, senior vice president of low carbon solutions for McDermott, said in the release.

Plans are to generate about 200,000 tons of hydrogen and 1 million tons of green ammonia annually at the power-to-X mega project, according to Abraxas. The project will also have its own port infrastructure to enable export of products to global markets.

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