Canada has announced it will commit up to CAD $300m ($216m) to support clean hydrogen trade with Germany, reinforcing their joint hydrogen alliance.
The funds are expected to be allocated through a tender process at the end of the year (2024) with a similar funding commitment 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 by Canadian industry and driven by Canadian workers.”
The two respective governments agreed to establish a “bilateral window” for hydrogen trade back in March (2024). This would be achieved through Germany’s H2Global Foundation to support commercial transactions between Canadian producers and Germany industry.
“Germany is one of the strongest economies in the world,” claimed Karina Häuslmeier, the Deputy Head of Mission at the German Embassy Ottawa.
“In order to diversify its increasing demand of green hydrogen and speed up the energy transition to reach global climate goals, Germany needs stable and reliable partners like our close friend and 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 hydrogen trade.”
The two countries first established a Canada-Germany energy partnership in 2021, before they began the Hydrogen Alliance a year later.
In June (2024), clean hydrogen investment tax credits proposed as part of Canada’s budget were passed into law.
It will see Canadian hydrogen producers offered between 15 and 40% of the investments for eligible projects, using a carbon intensity-based tier structure.
