Listen to this article
Estimated 2 minutes
The audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.
A group of companies behind a proposed green hydrogen operation in Newfoundland has filed for creditor protection, saying the project is essentially worthless if the province takes back its Crown land.
Richard Hugh is chief executive of World Energy GH2, the company leading the consortium referred to as WEGH2 Group in court documents.
Hugh says in an affidavit the consortium owes the Newfoundland and Labrador government about $10.5 million in Crown land reserve fees.
The affidavit, filed last week in provincial Supreme Court, says the group will not survive if the province makes good on its vow last month to strip Crown lands from green hydrogen companies that are behind in their fees.
The consortium, which is backed in part by businessman John Risley, also owes Export Development Canada about $50 million and about $15 million in shareholder loans.
Hugh says there is more than $120 million already invested in the project and WEGH2 hopes to restructure and renegotiate its debts to keep the operation alive.
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 $776 million US in debt.
Neither Risley nor the Newfoundland and Labrador government responded immediately to a request for comment.
Download our free CBC News app to sign up for push alerts for CBC Newfoundland and Labrador. Sign up for our daily headlines newsletter here. Click here to visit our landing page.
