Canada commits EUR 200m to clean hydrogen alliance with Germany

The Canadian Federal Government has committed up to CAD 300 million (USD 216.8m/EUR 200.3m) to support transatlantic clean hydrogen trade with Germany as part of the joint Canada-Germany Hydrogen Alliance.

The announcement was made by Jonathan Wilkinson, minister of energy and natural resources, along with other officials, in Port Hawkesbury on Wednesday.

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Karina Häuslmeier, the deputy head of mission at the German embassy in Ottawa, who also attended the event, welcomed Canada’s commitment to match Germany’s offer of EUR 200 million (USD 216.5m) to co-fund a bilateral instrument for hydrogen trade.

The initiative will help companies from Atlantic Canada access German markets for their clean hydrogen and ammonia. The European ally, in turn, will benefit from access to competitively priced clean energy products produced by Canadian industry.

The Natural Resources Canada department explained in the press statement that the funds will be allocated through a competitive tender process expected to be launched by the end of 2024, following a European Commission (EC) review of the proposed auction parameters and a similar funding commitment from Germany.

Canada's investment commitment follows a memorandum of understanding (MoU) signed by the two countries in March to establish a jointly supported Canada-Germany clean hydrogen window.

The Wednesday announcement was embraced by North American green hydrogen developer EverWind which in a separate statement noted that the bilateral programme will facilitate billions worth of export contracts for Atlantic Canadian projects.

(CAD 1 = USD 0.723/EUR 0.668)

(EUR 1 = USD 1.083)