Canada, Germany ink hydrogen deal in bid to shun Russian energy – National

featured
Share

Share This Post

or copy the link


Canada, citing the need to shun Russian energy, on Monday signed an agreement with Germany that it said would accelerate work towards the commercial-scale trade of clean hydrogen fuel.

The two nations inked a memorandum of understanding that commits them to backing transactions between Canadian hydrogen producers and Germany’s industrial manufacturing and energy distribution sectors.

“Canada is working with European allies to displace imports of Russian oil and gas and fight climate change with clean Canadian hydrogen. Canada can be a world-leading producer and exporter of clean hydrogen,” the federal natural resources ministry said in a statement.

Hydrogen is a zero-carbon fuel best suited for powering large industrial machines, heavy vehicles and for heating.


Click to play video: 'Canada and Germany sign green hydrogen agreement'


Canada and Germany sign green hydrogen agreement


To create a hydrogen economy, Germany launched the H2-Global project in 2021 using a “double auction” model in which the government would buy the green fuel from producers and sell it to industrial consumers for less.

Story continues below advertisement

Germany’s economy ministry said the agreement expands the model to include the Canadian government’s willingness to help subsidize any losses. The subsidy amount was not specified.


The email you need for the day’s
top news stories from Canada and around the world.


The email you need for the day’s
top news stories from Canada and around the world.

Berlin said last month it would earmark up to 3.53 billion euros ($3.84 billion) of public funds to procure green hydrogen and its derivatives from 2027 to 2036 to compensate for the difference between supply and demand prices.

“Although some challenges remain, we believe a common H2-Global financing window can play an important role in closing the remaining pricing gap,” Economy Minister Robert Habeck said in a statement on Monday.


Click to play video: 'Trudeau says Russia’s war in Ukraine has ‘accelerated’ transition to clean energy'


Trudeau says Russia’s war in Ukraine has ‘accelerated’ transition to clean energy


In August 2022, Prime Minister Justin Trudeau and German Chancellor Olaf Scholz agreed to establish a transatlantic supply corridor while coordinating policies to attract investments in hydrogen projects. The deal envisaged Canadian exports to Germany starting in 2025.

Story continues below advertisement

More than 80 low-carbon hydrogen production projects have been announced in Canada to date. Last year one of the first projects delayed its start by one year because the operator’s European customers needed more time to develop special infrastructure to handle the product.





Source link

0
joy
Joy
0
cong_
Cong.
0
loved
Loved
0
surprised
Surprised
0
unliked
Unliked
0
mad
Mad
Canada, Germany ink hydrogen deal in bid to shun Russian energy – National

Your email address will not be published. Required fields are marked *

Login

To enjoy 9News privileges, log in or create an account now, and it's completely free!

Follow Us