Hydrogen Without the Hype: North Atlantic’s Bold Bet on Liquid Energy

A quiet comeback in Canada’s hydrogen game

While the buzz around hydrogen in Newfoundland and Labrador has dimmed, one company is quietly moving full speed ahead. St. John's-based North Atlantic Refining Limited (NARL) is charting its own course—one that skips ammonia and doubles down on a unique delivery system built around liquid organic hydrogen carriers (LOHCs).

It’s not the loudest project in the province, but it might just be the most realistic.

The trouble with green hydrogen dreams

Over the past year, some of Canada’s most ambitious hydrogen plans have hit pause. Projects from Stephenville to Argentia have faced cost overruns, financing delays, and shifting government timelines.

According to Amit Kumar, a professor at the University of Alberta who studies hydrogen economics, "green hydrogen is still too expensive to scale without massive subsidies. We're at least a decade away from seeing it become cost-effective."

That reality has slowed or restructured proposals from groups like World Energy GH2, which had previously planned to build Canada’s first commercial green hydrogen and ammonia facility in western Newfoundland. In a statement to CBC, the company said: “The green hydrogen/ammonia market is not maturing at the rate expected. Policies, pricing, and pipelines are not yet ready to support market development.”

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This rendering shows the hydrogen production facility planned by St. John’s-based North Atlantic at the Port of Come By Chance in Placentia Bay. Once complete, the plant is expected to produce 30,000 tonnes of hydrogen annually. (Submitted by North Atlantic)

What makes NARL different

NARL’s approach breaks away from the norm. Instead of converting hydrogen into ammonia for shipping—which presents its own safety and efficiency hurdles—they plan to use LOHCs. This method blends hydrogen with toluene to form methylcyclohexane, a stable liquid that can be shipped like gasoline.

Once it reaches Europe, the hydrogen is extracted, and the toluene is shipped back to Newfoundland for reuse. It’s circular, efficient, and much easier to handle than ammonia.

“We have done our assessments and we have made a decision to go in a different direction,” said Jeff Murphy, vice-president of capital projects at North Atlantic.

Why this strategy matters

Of the six wind-hydrogen projects on the table in the province, five involve ammonia. Only NARL is betting on LOHCs.

Murphy argues that ammonia transport is “not as technically mature.” With that in mind, the company has committed to building a 320-megawatt wind farm near Sunnyside, Trinity Bay. It will feed clean energy into a hydrogen production plant at the Port of Come By Chance.

This facility, once fully operational, is expected to produce 30,000 tonnes of green hydrogen annually. Construction is slated to begin after a final investment decision in 2026, with commercial operations starting in early 2029.

Making the most of what they already have

NARL isn’t starting from scratch. The proposed hydrogen facility will share the site of the company’s existing logistics terminal, which includes a docking port and a tank farm capable of storing 4.3 million barrels of refined fuels.

This existing infrastructure gives them an edge in an increasingly crowded energy transition race. It’s one of the few cases where an oil-era asset could become a springboard for clean energy.

“We believe that we're going to be able to deliver hydrogen at a cost that is very competitive with what the market is dictating in Europe today,” said Murphy.

North Atlantic’s wind-hydrogen project includes plans for a 320-megawatt wind farm on elevated land near Sunnyside, overlooking Bull Arm in Trinity Bay. The site will feature 47 turbines and a 25-kilometre transmission line connecting to the Port of Come By Chance. (Submitted by North Atlantic)

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What’s next for the green energy hub

The hydrogen won’t just be produced and left to sit. It’s going to move. Europe, still grappling with energy diversification post-Russia, is eager for scalable green fuel sources.

Companies like Germany’s Uniper and RWE have been actively seeking hydrogen imports as part of EU climate mandates. Murphy confirmed that North Atlantic is already in talks with potential buyers.

“We know that those contracts are out there,” he said. “It’s only a matter of finalizing them.”

The political and market backdrop

The government of Newfoundland and Labrador remains hopeful about hydrogen’s future. According to Andrew Parsons, Minister of Industry, Energy and Technology, “there is still hope.”

So far, six proponents have paid “tens of millions” in Crown land fees to reserve acreage for future wind and hydrogen projects. Parsons also emphasized that the government is working with companies to extend timelines and secure investment.

But not all projects are holding steady. Two developers—EverWind Fuels and Toqlukuti’k Wind and Hydrogen Ltd.—have seen their land reserves cut by 132,000 hectares combined.

EverWind remains active, claiming “advanced discussions” with hydrogen buyers in Germany.

Local response and environmental plans

On the ground, NARL has made efforts to build support in nearby communities like Sunnyside, Arnold’s Cove, and Southern Harbour. Murphy said community feedback so far has been mostly positive, with design adjustments made to address local concerns.

He also noted that millions have already been invested into wind assessments, engineering studies, and environmental reviews. This isn’t just a press release; it’s already in motion.

Will LOHC become the standard?

The LOHC approach isn’t new, but it’s rarely used at scale. Japan has been testing it for years, with companies like Chiyoda Corporation and Mitsui & Co. leading the way in Asia.

If North Atlantic proves the model works commercially, it could open up an entirely new channel for hydrogen transport—one that’s safer and potentially cheaper than ammonia.

The challenge now is cost parity.

A long game, not a quick win

While companies like North Atlantic push forward, experts like Amit Kumar continue to caution against over-optimism. According to Kumar, "green hydrogen production technology is improving. But my sense is it is still going to take about 10 years to become economical."

Still, North Atlantic believes it has the right recipe: a blend of existing infrastructure, realistic technology, and a patient strategy. It’s not flashy, but in an industry that’s long on vision and short on delivery, it might be exactly what’s needed.