McDermott International, Inc., a leading U.S. based provider of engineering and construction solutions to the energy industry, has been awarded a front-end engineering and design (FEED) contract by Abraxas to build a renewable energy project in central Newfoundland, Canada.

Under the contract, McDermott will provide front-end engineering design, engineering, procurement, and construction (EPC) execution planning services for the project's green hydrogen production, ammonia processing, and product storage. As a result, they plan to build the first commercial green hydrogen and ammonia production facility in Canada, which plans to produce 165,000 tons of green hydrogen and 5,000 tons of ammonia per year.

However, in order to use green hydrogen cost-effectively in processes such as industrial heating, the cost of green hydrogen is a major obstacle.