Government of Canada Announces $300 Million in Port Hawkesbury on Canada - Germany Hydrogen Alliance

(Natural Resources Canada) Hydrogen will play an essential role in meeting global energy needs, whether in energy security, energy transition or the broader climate imperative. Canada’s vast natural resources, world-leading technology companies, and existing energy infrastructure position us as a secure and reliable supplier of clean hydrogen. That is why the Government of Canada is continuing its work and support to ensure the development of a prosperous transatlantic hydrogen trade corridor with our German allies, which will facilitate industrial decarbonization in Germany and across Europe.

Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, announced Canada will commit up to $300 million to support clean hydrogen trade with Germany. The funds will be allocated via a competitive auction process expected to be launched by the end of the year, following European Commission review of the proposed auction parameters and a similar funding commitment from Germany. As part of the joint Canada-Germany Hydrogen Alliance, this initiative will help Canadian companies access German markets for their clean hydrogen and ammonia. It will also ensure Germany has access to competitively priced clean energy products produced by Canadian industry and driven by Canadian workers.

Germany is one of Canada’s closest allies and friends on the world stage, with a shared commitment to building clean economies. Canada-Germany clean hydrogen trade will help create sustainable jobs for Canadian workers, enhance energy security for our allies, and lower emissions on both sides of the Atlantic. Today, we are one step closer to a thriving transatlantic hydrogen economy, providing enormous economic opportunities for Canadians from coast-to-coast-to-coast, and notably, right here in Atlantic Canada.

The Government of Canada is committed to being the provider of choice to our global allies by investing in clean energy. These actions will help Europe achieve greater energy security, while fighting climate change and building a better, more prosperous future on both sides of the Atlantic. Today’s announcement confirms Canada’s commitment to those allies and the significant advancements made in supporting the export needs as it relates to clean hydrogen, and our race to reach net-zero globally.

Quotes

“Canada is a reliable supplier of clean energy for our global allies. To keep building on our strong friendship and partnership, today’s announcement will ensure Germany has access to Canadian clean hydrogen to power their economy, in turn creating jobs and driving economic growth here in Atlantic Canada.”

The Honourable Jonathan Wilkinson
Minister of Energy and Natural Resources

"Germany is one of the strongest economies in the world. 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 200 million € (approx. 300 million CAD) in order to co-fund a bilateral instrument for hydrogen trade."

Karina Häuslmeier
Deputy Head of Mission, German Embassy Ottawa

“Hydrogen presents a huge opportunity for jobs and economic growth here on Cape Breton Island. Businesses are ramping up to meet demand for clean energy here at home and abroad, which is creating local jobs and supporting our local communities like Port Hawkesbury. That’s what today’s announcement is about.”

The Honourable Jaimie Battiste
MP for Sydney–Victoria

“The world wants to buy clean energy from Canada. Here in Port Hawkesbury, we know there is enormous opportunity for clean hydrogen to be exported to other countries. I am pleased to see today’s announcement, which reinvigorates Nova Scotian businesses to step up and meet the moment.”

The Honourable Mike Kelloway
MP for Cape Breton–Canso

Quick facts

In 2020, Canada’s Hydrogen Strategy introduced a framework that would help set us on the path to meet our climate change goals of becoming net-zero by 2050 and position Canada as a global supplier and producer of low-carbon hydrogen. Since then, significant investments have been made to advance Canada’s hydrogen sector.

In March 2021, the Government of Canada formalized the Canada-German bilateral energy relationship through the signing of the Memorandum of Understanding (MOU), establishing a Canada-Germany Energy Partnership.

In August 2022, the Government of Canada signed a Joint Declaration of Intent to establish a Canada-Germany Hydrogen Alliance, supporting the export of clean hydrogen to Germany by 2025.

In March 2024, the Government of Canada signed an MOU to establish a jointly supported Canada-Germany clean hydrogen window.

In May 2024, the Government of Canada launched the Hydrogen Strategy for Canada: Progress Report. The Report is the result of three years of engagement, research and analysis, including with experts and stakeholders

Budget 2024 presented key investments to incentivize the development and adoption of clean fuels and accelerate innovation and investments across Canada’s hydrogen space. This is supported by Canada’s new major economic investment tax credits, which proposes the implementation of a Clean Hydrogen Investment Tax Credit.

In June 2024, the Government of Canada announced the launch of the Clean Hydrogen Investment Tax Credit.

Bill C-49, an Act to amend the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts is expected to become law and expand the existing offshore petroleum joint management regimes established with Nova Scotia and Newfoundland and Labrador to include offshore renewable energy. Once established, these regimes will confirm the mandate of offshore energy regulators and expand opportunities to develop offshore renewable energy resources, including through offshore wind projects that could power the production of clean hydrogen. READ MORE