Canada will commit up to $300 million to ensure the development of a transatlantic hydrogen trade corridor with Germany.
According to Canada’s government, the funds will be allocated via a competitive auction process expected to be launched by the end of 2024, following a European Commission review of the proposed auction parameters and a similar funding commitment from Germany.
As part of the joint Canada-Germany Hydrogen Alliance , this initiative will help Canadian companies access German markets for their clean hydrogen and ammonia and it will ensure Germany has access to competitively priced clean energy products produced by Canadian industry and driven by Canadian workers, the government noted.
Canada-Germany clean hydrogen trade is expected to help create sustainable jobs for Canadian workers, enhance energy security for Germany and lower emissions on both sides of the Atlantic.
Jonathan Wilkinson, Minister of Energy and Natural Resources, commented: “Canada is a reliable supplier of clean energy for our global allies. To keep building on our strong friendship and partnership, today’s announcement will ensure Germany has access to Canadian clean hydrogen to power their economy, in turn creating jobs and driving economic growth here in Atlantic Canada.”
Karina Häuslmeier, Deputy Head of Mission, German Embassy Ottawa, stated: “Germany is one of the strongest economies in the world. In order to diversify its increasing demand of green hydrogen and speed-up the energy transition to reach global climate goals, Germany needs stable and reliable partners like our close friend and ally Canada. We welcome Canada’s commitment to match our offer of 200 million € (approx. 300 million CAD) in order to co-fund a bilateral instrument for hydrogen trade.”
To remind, in March 2021, Canada’s government formalized the Canada-German bilateral energy relationship through the signing of a memorandum of understanding (MoU), establishing a Canada-Germany Energy Partnership.
In August 2022, Canada signed a joint declaration of intent to establish the Canada-Germany Hydrogen Alliance, and In March 2024, an MoU was inked to establish a Canada-Germany clean hydrogen window that will support commercial transactions between Canada’s hydrogen producers and Germany’s industrial manufacturing and energy distribution sectors.