CANADA | MARKET INSIGHT
public buildings, reflecting consistent public sector investment to address long-standing gaps in essential services and infrastructure across provinces. Trade tensions and evolving tariff policies
are impacting construction costs. Canada is tightening tariff-rate quotas on imported steel by reducing allowances for non-FTA partners and imposing 25% global tariffs on selected steel derivative products. These measures are intended to support domestic producers and limit excess foreign supply but are contributing to fluctuations in material prices and supply chains, increasing volatility in the cost of steel, lumber, and related inputs. To address challenges arising from its tariff
dispute with the US, the Canadian government introduced a broad package of measures in September 2025 to protect and modernise key industries. This includes a CAD5bn ($3.8bn)
Green hydrogen and ammonia production on the cards
A renewable hydrogen production and distribution facility is under construction at the port of
Stephenville.The development is intended to accelerate the expansion of green hydrogen, a clean, transportable fuel produced from wind and water. World Energy is positioning itself as one of the first large-scale global suppliers of this resource in the region. The project is expected to generate 1,800 direct construction jobs, 300 operational roles and 3,500 indirect jobs.
It will be Canada’s first commercial-scale green hydrogen and ammonia production facility,
powered by a 3.5GW wind farm and producing approximately 250,000t of hydrogen annually using 1.5GW electrolysers.
Canada and Germany have signed a green hydrogen agreement under which Germany is
expected to import hydrogen via pipeline to North Rhine-Westphalia, a major industrial hub in Europe that is emerging as a key hydrogen centre. World Energy GH2 is leading the project in Newfoundland and Labrador, Canada and the
development will also include a hydrogen plant with a capacity of 250,000 tonnes per annum, supported by a 1,800MW electrolysis facility. Additional infrastructure includes production and storage units, transport systems, a terminal, cooling systems, 530 wind turbines, filters, generators, safety systems and pipelines.
The project will be delivered in three phases: • Phase 1 ($5,000m): Construction of 2,000MW across two onshore wind farms (Port au Port and Codroy), 600MW of solid oxide electrolyser cells, a hydrogen processing facility and polymer electrolyte membrane electrolysers. A green ammonia plant will convert 60,000t of hydrogen annually into approximately 360,000t of ammonia. • Phase 2: Development of a third 1,000MW wind farm (location pending) and expansion of hydrogen production capacity. • Phase 3: Evaluation of additional wind resources and potential further expansion.
SK Ecoplant holds a 20% stake in Phase 1 and will supply and install electrolysers, as well as carry out FEED work. It will also manage EPC activities for ammonia production alongside SK Eco Engineering. Bloom Energy is a potential supplier of solid oxide electrolysis cells. Triten IAG is serving as engineering design consultant, while RBC Capital Markets and Green Giraffe Advisory are financial advisors. Legal advisory roles are held by McCarthy Tétrault and McInnes Cooper. McDermott has been appointed as design-build contractor.
US tariffs are dragging on Canada’s economy.
ochmagazine.com | Summer 2026 19
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