Canada and Germany Sign New Hydrogen Deal

A new hydrogen deal between Canada and Germany is expected to kick-start a transatlantic hydrogen supply network, with the first deliveries planned for 2025.

This agreement is a “declaration of intent” between the two countries to form a hydrogen alliance.

Alongside the Prime Minister of Canada, Justin Trudeau, and the Chancellor of Germany, Olaf Scholz, Natural Resources Minister Jonathan Wilkinson and German Vice-Chancellor Robert Habeck signed the deal while attending a hydrogen trade show in Stephenville, Newfoundland.

“The world is going to need energy in the coming decades,” said Trudeau. “It also is going to need to make sure that that energy is net-zero.”

As proof that the agreement can achieve its high aims, he pointed to private sector investment in green energy projects like the one proposed for Stephenville.

“There is a market case for this. This is where the world is going.”

Although Russia is not explicitly mentioned in the deal, it is clear that President Vladimir Putin is expected to get the message that Russia’s time as the world’s energy superpower is coming to an end.

To fulfill its climate objectives and break its energy dependency on Russia, Germany is actively exploring long-term alternatives for fossil fuels.

Scholz has stated that even though there are plans to increase production, most of Germany’s hydrogen demands will have to be met through imports.

“In the long run, the real potential lies in green hydrogen from the wind-rich, thinly populated Atlantic provinces,” said Scholz.

As the conflict in Ukraine has challenged European energy security, both governments acknowledge that this agreement would not immediately meet Germany’s goal to reduce its dependency on Russian oil and gas.

Even though Canada produces nearly no hydrogen to meet the requirements of the agreement, both countries are confident that a new hydrogen transport route can be developed “well before 2030” and that initial deliveries might begin as early as 2025.

Wilkinson stated that Canada plans to rely on current funding programs such as the $1.5 billion Clean Fuels Fund, the country will also put in additional funding if and when it is required.

Original source material for this article taken from here