Short answer: Yes.
Not so short answer: It is possible, however it requires a little bit of know-how. You will need to consider the following:
- a way to manage text, including fonts and display (with different colors)
- a way to manage scenes, you are going to have to manage dialogues and actor animation yourself. This part is easy, if you create a simple engine that looks for data (xml) and processes it, however it requires some game design knowledge.
- resource management. Visual novels are rather resource heavy, considering all those large images of characters and scenes. Background images will take the most space, because they are rather diverse and cover the whole window. Then there are character graphics and, of course, sounds (effects, music).
Considering the resources, I don't think a HTML5 game engine is suitable for fairly large VN projects. Without some way to preload assets during gameplay, you'd have to download all graphics and sounds at once, meaning you have to wait for 50+ MB game to download.
But it is very much doable. I believe there is an example of VN game lying somewhere in the examples forum.
Edit: found the example of C2 visual novelMipey2012-08-31 21:42:14