Port of Argentia Inc., a capital company that owns the heavy industrial seaport at Port of Argentia in Newfoundland’s Placentia Bay, announced on June 5 that it has reached a binding agreement on commercial terms with Pattern Renewable Holdings Canada ULC (Pattern Energy) for a planned renewable energy-to-green fuels project at Argentia.
Formerly the site of a US Naval Base, Argentia offers a strategic location near the main shipping lanes between North America and Europe, and is being redeveloped with a diverse group of port users and tenants involved in marine transportation, renewable energy, manufacturing, construction, offshore oil, mining, and other sectors.
Pattern Energy is taking a lease option on some 6,000 acres of industrial and forest lands owned by the Port. Should it exercise its option and proceed with the project, Pattern Energy will reportedly construct a 300-megawatt wind energy facility designed to power the production of green ammonia for export to global markets.
“Today we are announcing an agreement on Pattern’s wind energy-to-ammonia project which will generate significant wealth, business opportunities, and employment for our region for decades,” said Port Board Chairperson Genny Picco. “Pattern Energy is proving to be an ideal development partner, and we are excited about the benefits this project will bring in the years to come.”
Key commercial terms of the agreement include land lease rates, priority berthing charges, and a wind royalty on electricity sales. Argentia Capital Inc. (ACI), the Port’s 50/50 partnership with investment company Torrent Capital Ltd., was a signatory to the agreement, which includes commercial terms for ACI to co-invest in the renewable project as a Limited Partner, as well as receive a gross revenue royalty on ammonia sales.
“ACI is executing on its strategy of working with the Port to capture revenue streams from third party equity and royalty opportunities,” said Wade Dawe, President and CEO of Torrent Capital. “As a partner in ACI, Torrent will take the lead in raising the capital necessary for ACI to exercise its co-investment right in the renewables project.”
Pattern Energy’s plans also include additional phases that could include increasing wind energy production utilizing Crown Lands and the expansion of their ammonia production plant on site at Argentia.
“This agreement sets the stage for Pattern Energy to continue development on this exciting project,” said Dwight Ball, Chairperson of ACI. “Pattern has brought the Port, through its partnership in ACI, in as an equity partner, which will strengthen the Port in its role as the region’s key economic driver.