Hydrogen outfit seeks creditor protection after N.L. vows to take back Crown land

ST. JOHN’S – A consortium of companies behind a proposed green hydrogen operation in western Newfoundland says a recent decision by the provincial government to reclaim Crown land has driven it to seek creditor protection and could render its project worthless.

World Energy GH2’s proposal was once at the forefront of a push to develop a wind-powered hydrogen energy sector in Newfoundland and Labrador, championed by Nova Scotia seafood magnate John Risley. But court documents reveal the project is grappling with steep debt and a threat from the provincial government to take away its stockpile of land.

“The company is in an immediate liquidity crisis,” said an affidavit dated Thursday from Richard Hugh, who is chief executive of the companies in the consortium, referred to as WEGH2 Group in the court documents.
”We have no meaningful credit available under our current facilities and are unsustainably operating, with no ability to satisfy creditors absent a formal process.”

Companies in Atlantic Canada have been racing to harness wind energy to produce hydrogen and ammonia for eventual shipment to Europe, though the market has been slow to develop overseas. Hydrogen, which is turned into ammonia for long-distance shipping, has various applications, including as fuel for transportation.

WEGH2 Group is a complicated nesting of companies with various debts and creditors, the court documents show. In total, the group is carrying debts and liabilities of roughly $100 million, with assets of about $29.2 million, according to Hugh’s affidavit. The outfit owes Export Development Canada about $50 million and has roughly $15 million outstanding in shareholder loans, the court filings said.

It also owes the Newfoundland and Labrador government about $10.5 million in Crown land reserve fees. The province had set aside about 1,080 square kilometres of Crown land for the wind-powered hydrogen and ammonia project, which cleared the government’s environmental assessment process in 2024. The court documents say the province was charging roughly $390,000 a month to hold the land. 

The project was one of several for which the province was holding Crown land. Last month, Energy Minister Lloyd Parrott announced those holds would not be renewed for companies that were behind in their land fees.

WEGH2 Group tried unsuccessfully to work out a repayment plan with the Newfoundland and Labrador government, promising to pay off the balance by the end of 2028, Hugh said. A letter included from the Progressive Conservative government in December suggests the group missed a payment and asked for all outstanding fees to be paid by the end of 2026.

“Any meaningful value realization of the project is inextricably linked to the retention of the Crown land reservation and environmental approvals tied to the project area,” Hugh said.

His affidavit said there is more than $120 million already invested in the project, and WEGH2 hopes to restructure and renegotiate its debts to keep it alive.

The case is due back in Supreme Court on March 9.

World Energy GH2 is partly owned by Risley’s company, CFFI Ventures, which is seeking a court-approved takeover in Nova Scotia in an effort to manage more than US$776 million in debt.

Risley directed The Canadian Press to Hugh for comment, who did not immediately respond. The Newfoundland and Labrador government also did not immediately respond to a request for a comment.

This report by The Canadian Press was first published March 2, 2026.