Port of Argentia reaches deal for proposed wind-to-ammonia energy project

The Port of Argentia has reached an agreement with U.s.-based Pattern Energy that could make Argentia home to a wind-to-ammonia renewable energy project.

As part of the agreement, Pattern Energy has secured a lease option for about 6,000 acres of the port authority’s industrial and forest lands. If it exercises its option, Pattern Energy plans to build a 300-megawatt wind energy facility to produce and export carbon-free ammonia.

Commercial terms in the agreement include land lease rates at the port, priority berthing charges and a wind royalty on electricity sales.

“Pattern Energy’s plans also include additional phases which could include increasing wind energy production utilizing Crown lands and the expansion of their ammonia production plant on site at Argentia,” said Port of Argentia CEO Scott Penney.

The agreement also allows Argentia Capital Inc., the port authority’s partnership with Torrent Capital Ltd., to co-invest in the project as a limited partner and earn a royalty on ammonia sales.

Torrent Capital will take the lead in sourcing the funding for Argentia Capital Inc.’s co-investment in the renewable energy project.