McDermott has secured an early contractor involvement (ECI) agreement from energy transition developer Abraxas Power for the latter’s Exploits Valley Renewable Energy (EVREC) renewable energy project in Canada.
Under the terms of the ECI agreement, McDermott will deliver front-end engineering design (FEED) and engineering, procurement, and construction (EPC) execution planning services for the Canadian clean energy project.
The engineering and construction solutions provider will also be responsible for the open book EPC cost estimates for the hydrogen production, ammonia processing, and product storage part of the EVREC project.
To be located in Central Newfoundland, the clean energy project will involve the development of a wind farm comprising up to 530 turbines. It will have the capacity to generate 3.5GW of electricity.
The EVREC project will also feature a solar photovoltaic (PV) installation with a power generation capacity of 150MW.
McDermott low carbon solutions senior vice president Rob Shaul said: “The agreement is testament to McDermott’s industry-leading delivery and installation expertise, and the breadth of our capabilities across the energy transition.
“Our century of experience, from concept to completion, and integrated delivery model, means we can offer Abraxas a repeatable modular implementation solution that is expected to drive cost savings, reduce risk and provide quality assurance.”
According to Abraxas Power, the renewable energy project will be the first commercial green hydrogen and ammonia production facility in Canada. It will have the capacity to produce 165kta of hydrogen as well as 5,000 metric tons of ammonia per day.
Abraxas Power CEO Colter Eadie said: “We are very pleased to have McDermott onboarded as our ECI contractor.
“With their industry-leading delivery and installation expertise across the energy industry, we are confident that we have the right partner to achieve deliverables in a high quality, well managed, low-risk manner.”
McDermott intends to lead the contract work from its Houston office with the backing from another office located in Gurgaon, India.
