Canada and Germany on Monday signed a memorandum of understanding for the future sale of hydrogen produced from proposed projects in Atlantic Canada.
The agreement signed in the northern German city of Hamburg by Federal Energy Minister Jonathan Wilkinson and German Vice Chancellor Robert Habeck aims to ensure rapid access to the German market for Canadian hydrogen producers.
“Hydrogen represents a multibillion-dollar opportunity for Atlantic Canada,” Wilkinson told reporters during a conference call from Hamburg. “These actions underscore that Canada intends to be a key supplier in providing Germany and Europe with the clean energy they need to achieve their climate and energy security goals.”
The minister said the agreement builds on the Canada-Germany Hydrogen Alliance that was signed in Stephenville, Netherlands, in August 2022, with the intention of allowing the export of Canadian hydrogen by 2025. That alliance was signed several months after Russia invaded Ukraine, which forced German leaders to rethink their energy dependence on Russia and look for new sources of cleaner fuel.
As things stand, World Energy’s proposed GH2 wind-to-hydrogen project on Newfoundland’s Port au Port Peninsula is awaiting approval under a provincial environmental assessment. In Nova Scotia, EverWind Fuels and Bear Head Energy have plans, which have received provincial approval, to build hydrogen plants in Point Tupper.
Projects in both provinces would use wind energy to create hydrogen and ammonia. That ammonia would be sent to Germany, where it could be used as fuel to replace natural gas or converted back to hydrogen.
The new agreement commits both countries to finalize the terms and conditions for an early access commercial window by June 30. Wilkinson said the goal is to eventually hold hydrogen auctions that will set the price.
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“Over the next 90 days we’re trying to establish more certainty around pricing… which should then lead to agreements that really allow projects to start moving forward quickly,” he said.
Wilkinson said the measures announced Monday are necessary to meet Germany’s plans in 2025 to begin converting its industry to run on hydrogen; however, no facilities have yet been built in Canada.
Canada and Germany sign memorandum of understanding for the sale of hydrogen. #cdnpoli #hydrogen
“Canada wants to make sure it stays ahead and benefits from an economic perspective,” he said.
The minister added that the deal will not undermine Newfoundland and Labrador’s environmental assessment protocols or the federal environmental process for offshore wind projects, which would help supply some of the energy.
“This does not mean in any way that the projects have free rein,” he said.
Wilkinson was joined in Germany by John Horgan, Canada’s ambassador to Germany, along with indigenous and industry leaders.
Newfoundland and Labrador Premier Andrew Furey and Tim Houston of Nova Scotia did not make the trip, although Houston was originally scheduled to go.
Houston told reporters at the provincial legislature that over the weekend he decided not to travel due to labor disputes that have resulted in roaming strikes at several airports in Europe.
“I was only worried about the possibility of returning,” he said.
This report by The Canadian Press was first published March 18, 2024.