Canada and Germany Announce Hydrogen Alliance

Yesterday in Stephenville, Newfoundland, Prime Minister Justin Trudeau and Germany’s Chancellor Olaf Sholz signed a joint Declaration of Intent to establish a Canada-Germany Hydrogen Alliance. The declaration commits the two countries to collaboration in the export of clean Canadian hydrogen to Germany beginning in 2025.

The Canada–Germany Hydrogen Alliance commits the two countries to:

• enabling investment in hydrogen projects through policy harmonization;
• supporting the development of secure hydrogen supply chains;
• establishing a transatlantic Canada–Germany supply corridor; and
• exporting clean Canadian hydrogen by 2025.

The proposed Alliance will help establish a transatlantic Canada-Germany supply corridor as part of Germany’s efforts to shift its future energy needs away from Russia and towards longstanding allies like Canada.

Next Steps

While the document is focused on a bilateral international relationship, it also sheds light on the depth of opportunity in the clean hydrogen space domestically. The document comes with validation from Germany, an industrial powerhouse, regarding Canada’s clean hydrogen production potential. The document also outlines core areas of joint investment, such as Research, Development & Demonstration, a signal that further public investment on hydrogen is yet to come. Furthermore, the document outlines the intent of the federal government to continue investing funding from the Strategic Innovation Fund and other programs on advancing hydrogen projects.