Canada pledges CAD $300m for German hydrogen trade

Canada has announced it will commit up toCAD $300m ($216m) to support clean hydrogen trade with Germany, reinforcingtheir joint hydrogen alliance.

The funds are expected to be allocatedthrough a tender process at the end of the year (2024) with a similar fundingcommitment from Germany, once the European Commission approves the auction.

H2 View understands the auction will ensure“Germany has access to competitively priced clean energy products produced byCanadian industry and driven by Canadian workers.”

The two respective governments agreed toestablish a “bilateral window” for hydrogen trade back in March (2024). Thiswould be achieved through Germany’s H2Global Foundation to support commercialtransactions between Canadian producers and Germany industry.

“Germany is one of the strongest economiesin the world,” claimed Karina Häuslmeier, the Deputy Head of Mission at theGerman Embassy Ottawa.

“In order to diversify its increasingdemand of green hydrogen and speed up the energy transition to reach globalclimate goals, Germany needs stable and reliable partners like our close friendand ally Canada. We welcome Canada’s commitment to match our offer of €200m(approx. CAD $300m) in order to co-fund a bilateral instrument for hydrogentrade.”

The two countries first established aCanada-Germany energy partnership in 2021, before they began the HydrogenAlliance a year later.

In June (2024), clean hydrogen investmenttax credits proposed as part of Canada’s budget were passed into law.

It will see Canadian hydrogen producersoffered between 15 and 40% of the investments for eligible projects, using acarbon intensity-based tier structure.

Source: H2 View