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Atlantic Canada’s Hydrogen Gamble: A Risky Bet on Taxpayer Dollars and Environmental Resources

Writer's picture: Lisa KearneyLisa Kearney

Reckless Leadership and Misguided Investments

Government and business leaders continue to show a shocking lack of prudence and alarming recklessness in their push for Atlantic Canada’s hydrogen-to-ammonia projects. Billions of dollars in taxpayer-funded loans, subsidies, and resources are being funneled into building infrastructure to export "green ammonia" to Germany—a gamble that appears poorly thought out. The initiatives are riddled with serious economic, logistical, social, and environmental challenges, making them seem more like political and business maneuvers than viable energy solutions.


Hydrogen-Ammonia plant rendering
Hydrogen-Ammonia plant rendering

Mounting Doubts and Stalled Progress

For months, Concerns About Wind Energy (CAWE) has voiced strong skepticism about the likelihood of these projects moving forward. Evidence from the Energy NL Conference only reinforces these doubts. During the event, Premier Andrew Furey’s efforts to court investors from Dubai seemed more like an act of desperation than confidence in the project’s viability. The lack of any signed power purchase agreements between Canada, Atlantic Canada, and Germany further highlights the shaky foundation of these plans.


Irresponsible Reclassification of Marystown’s Water Supply

The writing has been on the wall for some time for Chancellor Olaf Scholz’s green agenda. The collapse of his three-party coalition has left him leading a minority government, with polls showing his Social Democratic Party is likely to lose the February 2025 snap election to the Christian Democratic Union or the far-right Alternative for Germany. Adding to the pressure, Donald Trump is set to return as U.S. president in January 2025, and his outspoken opposition to wind energy, calling it a scam, signals a major shift in international priorities. These developments put Germany’s 2022 agreement with Atlantic Canada to import hydrogen in serious doubt. Political realities in both Germany and the U.S. indicate that such green energy projects have lost support, making their future highly unlikely.


Unprepared Markets and Premature Investments

On top of that, the controversies surrounding Bill C-49 and Bill C-69—the latter ruled 96% unconstitutional by the Supreme Court—add to the uncertainty. Alberta has already taken legal action against the federal government over the new Impact Assessment Act, citing constitutional violations, though other provinces have yet to follow suit. CAWE has worked tirelessly to shed light on these issues, using public awareness campaigns, detailed resources on our website (CAWE.ca), and active engagement on Facebook and X to encourage critical scrutiny of these unsustainable and socially irresponsible ventures.


Subsidy-Driven Schemes Lacking Strategic Planning

One of the most pressing concerns is the toll these projects would take on Newfoundland’s fresh water supply. In Marystown, NL, Mayor Brian Keating has suggested rezoning the town’s ‘Protected Water Supply’ to ‘Industrial’ to support hydrogen production. This reckless proposal jeopardizes the community’s main and only dependable fresh water supply, threatening residents, ecosystems, and the delicate balance of the region’s water table. Such a move exemplifies the broader irresponsibility of these projects, where speculative industrial interests are prioritized over the well-being of local communities and the environment.


Risks to Public Resources, Confidence, and the Environment

Adding to the uncertainty is the lack of a clear market for hydrogen and ammonia. Major German companies like E.On and Uniper have admitted they are still in the exploratory phases of incorporating these energy sources, yet Canadian leaders are forging ahead with massive investments. This hasty decision-making reflects a failure to conduct adequate due diligence, leaving taxpayers exposed to the risks of unproven ventures. Like we’ve seen before in Newfoundland with boondoggle after boondoggle with the latest being Muskrat Falls.


Critics argue that these projects are being driven by subsidies rather than genuine market demand, financial viability, or environmental returns. Public funds are being directed into speculative ventures with little evidence of a solid return on investment. By prematurely committing to massive wind farms, hydrogen production plants, and ammonia facilities—without addressing the serious inefficiencies and feasibility concerns—John Risley and his buddy, Premier Andrew Furey have undermined their credibility and their sustainable energy efforts. It’s a clear case of putting politics before practical solutions.


This approach not only risks wasting billions of dollars on underused infrastructure but also erodes public trust in government and industry leadership. Newfoundland’s critical water resources, the livelihoods of Marystown’s residents, and the broader environmental health of the region are being put at risk for a project that offers little in the way of guaranteed benefits. It’s a gamble that taxpayers—and future generations—can’t afford to lose.


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Concerns About Wind Energy (CAWE). We are a community-driven volunteer group committed to advocating for, educating about, and raising awareness of the negative impacts of proposed wind energy projects on our province's environment, culture, and history. Our concerns include the effects on wetlands, bogs, forests, protected habitats, ecosystems, residents' health, the fishery, wildlife, endangered species, national security, water supply, tourism-based economies, cultural heritage, archaeological and historic sites, and property values.

Together, we have the power to make a difference. Join us in amplifying our voices and standing united for a sustainable future that respects and protects our people and shared home. Your involvement is essential!

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