TORONTO, Nov. 18, 2024 (GLOBE NEWSWIRE) -- Abraxas Power Corp. ("Abraxas”), a leading energy transition developer, and EDF Group ("EDF”), a key player in the energy transition and a world leader in low-carbon energy, are pleased to announce they have entered into strategic development agreements to jointly develop the Exploits Valley Renewable Energy Corporation ("EVREC”) green hydrogen and ammonia project in Central Newfoundland (the "Project”).
EVREC is a Power-to-X (P2X) project that is expected to include up to 3+ gigawatts (GW) of onshore wind capacity with associated energy and molecular storage to power behind-the-meter green hydrogen (H2) and green ammonia (NH3) production. The Project anticipates generating ~200,000 tons of green H2 and ~1,000,000 tons of green NH3 annually. EVREC aims to have its own dedicated port infrastructure to export its products to global markets.
Through these agreements, Abraxas and EDF, as equity partners, will develop the project with the objective to reach a final investment decision (FID) in 2026. Construction is expected to take place from 2026 through 2030.
Colter Eadie, CEO of Abraxas and EVREC said, "We are thrilled to announce this transaction with EDF as we continue to advance the development of the EVREC project. The arrangements with EDF further support our commitment to advancing the energy transition and supporting Newfoundland and Labrador's green future. With the global experience of one of the world's largest energy companies, we are well-positioned to move forward with a project that is not only expected to drive economic growth in the region but is also expected to make a significant impact on reducing carbon emissions. EVREC represents a transformative step towards a sustainable energy economy, and we are excited to lead the way in delivering green hydrogen and ammonia to global markets, creating lasting benefits for Newfoundlanders and the environment."
Beatrice Buffon, Group Senior Executive Vice-President, EDF International Division, CEO of EDF Renewables commented, "We are proud to join our partner Abraxas within the EVREC Project which demonstrates strong competitive advantages in the global green hydrogen and ammonia market. With its Hydrogen Plan, EDF is supporting the energy transition with decarbonization solutions in the sectors that emit the most CO2. EDF has been one of the leading renewable energy companies in North America for more than 35 years and has been present in Canada since 2008. We look forward to cooperating with all Canadian stakeholders and our partner to bring this project to fruition.”
Once operational, it is anticipated that the Project will offset over 1.5 million tonnes of CO2 every year1, and contribute over CAD$5 billion2 to Newfoundlanders through remittances to the provincial budget as well as various stakeholder benefit agreements over the life of the project. The Project is expected to add hundreds of new, highly skilled and long-term jobs to central Newfoundland.
About Abraxas Power Corp.:
Abraxas is a pioneering energy transition developer focused on decarbonizing hard-to-abate sectors and creating value by solving the current and future challenges of the energy transition. Abraxas' broad mandate allows it to see opportunities across technologies and geographies to transform the global energy industry. Our team has extensive experience in leading, financing, and solving the challenges associated with energy transition, and a proven track record of delivering complex, large-scale development projects across various disciplines, including renewable power and storage, hydrogen and ammonia production, industrial and precious metals, large-scale project construction, and operations at scale. The team possesses strong project finance and capital markets experience and has a history of creating value for shareholders, stakeholders, and the communities they live in. Abraxas has signed strategic partnerships with various global strategics and technology providers.
Abraxas has been awarded over US$9 billion in capital projects through competitive government awards in furtherance of the energy transition, including our marquee EVREC Project.
To learn more, visit www.abraxaspower.com.
About EDF:
The EDF Group is a key player in the energy transition, as an integrated energy operator engaged in all aspects of the energy business: power generation, distribution, trading, energy sales and energy services. The Group is a world leader in low-carbon energy, with a low carbon output of 434TWh3, a diverse generation mix based mainly on nuclear and renewable energy (including hydropower). It is also investing in new technologies to support the energy transition. EDF's raison d'être is to build a net zero energy future with electricity and innovative solutions and services, to help save the planet and drive well-being and economic development. The Group supplies energy and services to approximately 40.9 million customers4 and generated consolidated sales of €139.7 billion in 2023.
Cautionary Notes
Certain statements contained in this press release constitute "forward-looking statements”. All statements other than statements of historical fact contained in this press release, and any statements preceded by, followed by or that include the words "believe”, "expect”, "aim”, "intend”, "plan”, "continue”, "will”, "may”, "would”, "anticipate”, "estimate”, "forecast”, "predict”, "project”, "seek”, "should” or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only Abraxas' and EVREC's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied, or forecasted in such forward-looking statements. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, EVREC and Abraxas. These forward-looking statements are made as of the date of this press release and EVREC and Abraxas assume no obligation to update or revise them to reflect subsequent information, events, or circumstances or otherwise, except as required by law.
1 Based on most up to date hydrogen production numbers and a 100% offset of hydrogen produced via steam methane reforming with a carbon coefficient of 10 kgCO2/kgH2
2 Includes the estimated economic impacts associated with operations and the spending of provincial tax/royalty revenues on public services. Values shown in 2024 dollars
3 See EDF's 2024 URD sections 1.2.3, 1.3.2 and 3.1
4 Customers are counted per delivery site. A customer may have two delivery points.
CONTACT: Contact:
Abraxas
J. Colter Eadie
Chief Executive Officer
Abraxas Power Corp. & Exploits Valley Renewable Energy Corporation
+40 736-372-724
EDF
Sandi Briner
Vice President, Marketing & Communications
EDF Renewables
+1.858.521.3525
