An oversized oil project has floated away from Argentia. So what's next for the port?

Onlookers witnessed a feat of engineering last week when the massive base for the West White Rose fixed wellhead oil platform was floated away from its graving dock at Argentia, marking the end of a years-long construction project that anchored activities and dominated the landscape at the sprawling Placentia Bay port.

The 210,000-tonne, 145-metre high concrete gravity structure, as it's called, will soon be towed to the Grand Banks, where it will be anchored to the sea floor in roughly 120 metres of water, and mated with a 25,000-tonne topside structure that will make its way from Texas. Oil production is scheduled to begin sometime next year.

The milestone was a cause for celebration on many fronts, but it also raises questions about the port's future now that the Cenovus project in Argentia is complete.

But at the port's administrative office this week, you won't find any unhappy faces.

"[The] future is extremely bright," CEO Scott Penney said during an interview with CBC News.

On Tuesday, there continued to be a buzz of activity at the port, with shipping containers being moved about by oversized forklifts, massive wind turbine blades being loaded onto an awaiting ship, and excavators and heavy trucks operating at a nearby recycling yard.

Some 40 businesses operate at the port, employing more than 240 people, and if people like Penney get their way, Argentia will boom once again in the post-West White Rose era.

Iron ore processing at Argentia?

Penney and his team knew the Cenovus project would eventually end, and they have been busy marketing the port around the globe in recent years, and laying the foundation for a $100-million terminal expansion at Cooper Cove that is expected to break ground next year.

The opportunities, Penney said, are cause for excitement.

Imagine, for example, an iron ore processing plant at Argentia, on a scale similar to the nickel processing plant in nearby Long Harbour, powered by zero-emitting hydrogen made from wind energy at the port.

Penney said he's in talks with an unnamed mining company for a scenario that would see iron ore from Labrador shipped to Argentia, where it would undergo secondary processing with minimal greenhouse gas emissions to create so-called "green steel."

"Yes, we have absolutely had conversations. That's what I can tell you," said Penney, adding he's muzzled from disclosing any details by a non-disclosure agreement.

Still hope for hydrogen

A proposed wind-hydrogen-ammonia project at Argentia by Pattern Energy is stalled because of high production costs and undeveloped export markets, but talks of a partnership with a mining company is breathing new life into the hydrogen concept, said Penney. 

"Hydrogen is a viable option," he said.

Pattern Energy is also keen on competing for a contract to supply wind energy to the province's power grid, with Newfoundland and Labrador Hydro expected to call for expressions of interest sometime this year, said Penney.

The West White Rose project also leaves behind an important legacy in the form of a specialized graving dock, and a freshly dredged channel in the harbour to allow the CGS to be towed into Placentia Bay.

Penney said this new infrastructure has allowed the port to be shortlisted for a "transitional energy" project that would involve years of construction activity, and generate much-needed employment.

Again, Penney can only say so much, but said "the opportunity is real," with a decision before the end of this year.

"We are shortlisted down to less than three, so that is quite encouraging for a port of our size to compete globally," he said.

He also sees a role for the port in Equinor's Bay du Nord oil project.

But much of this activity, if it occurs, is still years away. The provincial government is forecasting an uptick in unemployment over the next two years, and the jobless rate for members of the building and construction unions represented by Trades N.L. has now reached 70 per cent, according to executive director Bob Fiander.

"We're in a bit of a lull right now," Fiander told CBC News recently.

Key to province's growth

Meanwhile, Argentia has evolved into a diverse port, supporting industries such as marine transportation, renewable energy, aquaculture, offshore oil and mining.

Penney said the port has established partnerships with companies around the globe, and Argentia is now recognized in some of the leading boardrooms because of its strategic location, large footprint of more than 9,000 acres, ice-free access, and a skilled workforce.

Penney believes Argentia will play a key role in the province's future growth, and that will also mean good things for the nearby Town of Placentia.

"We remain optimistic that the next great project for this area will come," said Wayne Power, Placentia's deputy mayor.

Placentia received about $2.5 million in grants from the oil companies for hosting the West White Rose project at Argentia, so the town is hopeful that more major projects are on the horizon.

But for now, Power said there's a noticeable downturn in activity.

"We're seeing vacancy rates here with our apartments. You're not seeing as many people around the community availing of businesses and services," he said.

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.