Canada and Germany set up Hydrogen Alliance

Federal Minister for Economic Affairs and Climate Action Robert Habeck and Canada’s Natural Resources Minister Jonathan Wilkinson agreed on a Canada-Germany Hydrogen Alliance in Canada today.

The signing of the agreement was attended by Federal Chancellor Olaf Scholz and Prime Minister Justin Trudeau in Stephenville, in the province of Newfoundland and Labrador, and marked the conclusion of a three-day visit to Canada.

Minister Habeck said, “The Hydrogen Alliance between Canada and Germany is a significant milestone as we accelerate the international market roll-out of green hydrogen and clear the way for new transatlantic cooperation. Specifically, we aim to build up a transatlantic supply chain for green hydrogen. The first shipments from Canada to Germany are to begin as early as 2025.”

Natural Resources Minister Jonathan Wilkinson said, “Unlocking the potential of hydrogen is an essential part of our government’s plan for a sustainable economic future. Not just for the domestic opportunities for emissions reductions, but also for its potential as an export opportunity – to provide clean energy to countries around the globe.”

Canada and Germany have already been cooperating intensively on hydrogen for more than a year now in the context of the German-Canadian Energy Partnership. The new agreement aims to expand this cooperation. The Canada-Germany Hydrogen Alliance underscores the two countries shared interest in establishing a close trading partnership in hydrogen and its derivatives in the coming years.

In the context of the agreement, Canada will step up the production of hydrogen, mainly sourced from renewable energy, for export to Germany. In turn, Germany will support potential importers and consumers of green hydrogen. To this end, there will be in-depth consideration of ways to co-finance joint projects. Also, a task force is to be set up with representatives of industry from both sides to press ahead with joint flagship projects.

Before the signing ceremony, Federal Minister Robert Habeck and Federal Chancellor Olaf Scholz had spent time in Stephenville with Prime Minister Justin Trudeau and Minister Jonathan Wilkinson, visiting a Green Hydrogen Exhibition which was co-organised by the German-Canadian Energy Partnership.

The exhibition showcased the projects planned by various business consortia to produce green hydrogen using renewable energy. The green hydrogen is to be produced in Canada’s Atlantic provinces of Newfoundland and Labrador, Nova Scotia and New Brunswick, chiefly from wind energy, before it is shipped across the Atlantic to Germany in the form of ammonia.