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Buckeye Partners completes Bear Head Clean Energy acquisition

7/14/2022

Press Release - Buckeye Partners

Buckeye Partners, L.P. (Buckeye) today announced that it closed on the previously announced acquisition of Bear Head Energy, Inc. (Bear Head), which is developing a large-scale green hydrogen and ammonia production, storage and export project in Point Tupper, Nova Scotia with hydrogen electrolyzer capacity of over two gigawatts.

“Buckeye’s intention with this acquisition is to develop a large-scale green energy production, distribution and export hub,” said Buckeye CEO Todd Russo. “Given the project’s unique features and the geographic advantages of the region, including its status as one of the top locations globally for wind energy generation, we believe that this has the potential to become one the world’s premier green hydrogen production facilities. As Buckeye continues to evolve into a more diversified energy company, acquisitions like Bear Head represent an opportunity for us to invest in growth that aligns with our customers’ evolving needs and ESG priorities while leveraging our existing expertise and capabilities.”

As part of the project’s phased development, Buckeye plans to partner with on-shore and off-shore renewable energy developers to build out a large-scale green hydrogen hub for Atlantic Canada. Buckeye and Bear Head believe this development will create a significant number of new clean energy jobs in the province, help support Nova Scotia's carbon emissions reduction targets, and establish the region as a global leader in the production of green hydrogen for domestic and export markets.

“Together, Bear Head and Buckeye have the experience and resources necessary to successfully develop, construct and operate a world class green hydrogen facility on the Bear Head site,” said Bear Head President and CEO John Godbold. “Under Buckeye’s ownership, we believe that the Bear Head project will become a premier asset in the global hydrogen value chain by matching Nova Scotia’s considerable renewable resources with the world’s growing need for green fuels.”

“Bear Head is striving to build the modern clean hydrogen economy, and every decision we make is with a focus on creating a carbon-neutral future,” said Bear Head COO, Paul MacLean. “We are proud to be fully aligned with Buckeye, who shares our core values with respect to our commitment to working with Nova Scotia Mi’kmaw communities through open communication, engagement and delivering a broad partnership on key elements of our project. With the full support from local stakeholders and our owners, we believe that Bear Head will be well-positioned to help drive the transition to a low-carbon economy.”

Buckeye established its Alternative Energy operating segment as a clean energy business that focuses on the development, construction, and operation of alternative energy projects, including hydrogen, wind, and solar-powered energy solutions. The Bear Head Project is an addition to Buckeye’s growing asset portfolio in the clean energy sector and will further diversify the company’s revenue sources and position Buckeye to meaningfully participate in the energy transition.

"Buckeye's new and ongoing commitment to Canada is an investment in the skills of Canadian workers, in our access to global markets, and in our dedication to powering the green future," says Katie Curran, Interim CEO, Invest in Canada. “Foreign direct investment is bringing jobs, stability and promise to some of Canada's smaller communities, further proving that global investors will look at all corners of Canada for opportunities."

Hydrogen, which burns without releasing carbon, is one of the most promising paths to reducing emissions from hardto-abate industries including the maritime sector, heavy vehicle transportation, fertilizer and power generation. As the world moves steadily towards rapid decarbonization and governments around the world set new, progressively ambitious climate goals, hydrogen will play a central role in the energy, industrial and transportations sectors.