Encouraging StepsFrom a stock investment point of view, is this stock in the running?
It depends on Northland, who in turn depend on various circumstances, some beyond their control. So it's diffcult to get a read on Oceanic's stock.
I have no idea how much progress has been made. I'm just going to list the recent positives.
1. Oceanic is raising money and has appointed a new director. If things are forward looking with the windfarm, these two events can be viewed as positive.
2. November 4th, Federal Gov't talks about 30-40% tax credit for renewable energy projects and hydrogen initiatives,.(Details coming in the 2023 Federal Budget) Everything helps for keeping costs down and attracting companies both foreign and domestic.
3. Nov 8th. City of Prince Rupert wants to develop Watson Island into a green hydrogen facility, together with two First Nations. Pattern Energy could be involved (owned by Canada Pension Plan) Also discussing how renewable energy development can be applied for the North Coast in general.
4. Nov 14th. The possibility of using wind to power green hydrogen production is in the news.
5. November 16th. Triigon, owners of a shipping area across from Watson Island receive $75 million from Federal Gov't to expand and reserve an area for renewable energy shipments like green ammonia.
For Oceanic stock, some bid building at low prices occurs late Nov 17th. One million shares bid at 3 cents., etc. Not much to read into it at this stage as critical information is still wanting.
Putting all of the above together, it's encouraging. I think this is what Oceanic's management had envsioned years ago. There's a role for scaled up windpower in the North Coast region. Exactly what Northland has in mind is unclear and whether hydrogen/ammonia is part of the picture.
The First Nations, the Province, Hydro BC, Federal Govt all have to be involved. Competing with the world.
As a side note. Pattern Energy (CPP) is also involved at the Port of Argentia in Newfoundland, with a green ammonia proposal. For now they are determining the commercial feasibility of wind energy, and a hydrogen electrolysis plant with storage facilities. Export to Europe is the goal.
I assume the same is happening for Prince Rupert for the Asian market where Japan for example has started the bidding process to procure 500,000 tonnes of green fuel ammonia, starting in 2027. Long term contracts 20 years+. (3,000,000 tonnes wanted by 2030). California and South Korea may follow. Perfect for Prince Rupert projects.
Have to move quickly to avoid being left behind. Contracts have to be signed, etc. Already Australia has ambitious plans for mega green hydrogen/ammonia projects. UAE, Eygpt and Oman have major plans also. Canada can compete, but must be prepared to act fast.
If the Prince Rupert idea decides to initially go with hydro to get a faster start and the remain competitive then ok. Then later incorporate windpower. But using hydro will push the current transmission grid to its limits. The final size of the hydrogen/ammonia project has not been determined, but can't start small and scale up later. Must be large at the offset and wind will have to play a role. I'm guessing 1-3GW required.
So I expect more news in 2023 for all fronts, including Oceanic due to the urgency of getting on board. Still wondering about producing hydrogen at sea using processed sea water instead of using fresh water. Would free up BC Hydro's grid for other industrial users. I would not be surprised of BC Hydro is looking at the offshore windfarm proposal more seriously now.
In general, with the proposed federal tax credits, cost of wind powered electricity drops and should be competitive with BC Hydro.