WEGH2 Group obtains CCAA protection as Province moves to let Crown land reservations lapse

The WEGH2 Group, a Newfoundland and Labrador based green hydrogen and wind energy development group, obtained an Initial Order under the Companies’ Creditors Arrangement Act on February 26, 2026 as it seeks to preserve its Crown land reservations and restructure approximately $100 million in debt.

The filing group includes World Energy GH2 Inc., WEGH2 Holdings Inc., WEGH2 GP Inc., World Energy GH2 Limited Partnership, Viking Industrial Inc., Viking Marine Enterprises Inc., Port of Stephenville Holdings Inc., and Port Harmon Authority Ltd.

WEGH2 was incorporated in 2022 to develop an industrial scale wind generation and green hydrogen facility in Newfoundland and Labrador, with the Port of Stephenville as a key hub. The project was positioned to leverage the Province’s wind resources and export green hydrogen to Germany following geopolitical disruption in European energy markets.

In February 2023, the WEGH2 Group was granted a Crown land reservation of approximately 108,000 hectares for the wind energy project. The reservation commenced in August 2023 for 18 months, was extended to August 2025, and ultimately to 28 February 2026.

The project was financed through a secured loan facility from Export Development Canada, owed approximately $50 million, while unsecured trade payables total approximately $23.7 million. Royal Bank of Canada is also owed approximately $15 million on a secured basis. The group also owes approximately $10.5 million to the Province in connection with the project. The Crown land reservation has been invoiced at approximately $390,000 per month.

Management attributes the financial crisis to a lack of market support for green hydrogen infrastructure, delays in anticipated offtake, and restrictions imposed under the EDC loan facility. While approximately $47.9 million remained committed but undrawn under the EDC facility, access to those funds was restricted to capital uses, limiting liquidity.

A pivotal development occurred on February 19, when the Province communicated that the Crown land reservation would not be renewed. Absent Court intervention, the reservation was set to expire on February 28. Management asserts that any meaningful realization of value is inextricably linked to retention of the Crown land reservation and associated project specific approvals.

The companies intend to use the CCAA proceedings to stabilize operations and advance a broader restructuring plan. The group plans to engage with EDC and Royal Bank of Canada regarding refinancing, maturity extensions, covenant resets, or consensual restructuring of secured indebtedness. They also propose to formally negotiate with the Province regarding reinstatement, renewal, or cure arrangements tied to the Crown land reservations and related rights. A SISP will be pursued if refinancing cannot be achieved.

The Initial Order preserves the Crown land reservations during the initial stay period notwithstanding the 28 February 2026 expiry date.

Grant Thornton was appointed as Monitor. Counsel is O’Keefe & Sullivan for the companies and Reconstruct for the Monitor.