Government scales back wind-hydrogen land reserves as projects stall

The Newfoundland and Labrador government says it is sharply reducing the amount of Crown land set aside for wind-hydrogen projects after several companies failed to advance development or pay required fees — a shift that critics say raises questions about the province’s earlier ambitions.

Energy and Mines Minister Lloyd Parrott said Thursday the government has extended a Crown lands wind reserve for Exploits Valley Renewable Energy Corporation until Feb. 28, 2027. However, reserves for World Energy GH2 Limited Partnership, EverWind NL Company and Toqlukuti’k Wind and Hydrogen Ltd. will expire Feb. 28, 2026.

The decision follows what the province described as a lack of progress on the projects and unpaid Crown lands reserve fees.

The move dramatically shrinks the overall wind-reserve area from 381,676 hectares to 30,712 hectares, returning most of the land for other potential uses. The reversal comes after the province spent years promoting large-scale wind-hydrogen development as a key economic opportunity.

Under the province’s wind-hydrogen framework, companies must pay a Crown lands reserve fee equal to 3.5 per cent of the land’s market value, billed quarterly. The government says it has invoiced $54.6 million in reserve fees since issuing reserve letters but collected only $20.1 million as of Feb. 9.