PORT HAWKESBURY, NS,
July 31,
2024 /CNW/ - 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.
Related Information
- Clean Hydrogen Investment Tax Credit
- Hydrogen Strategy for Canada
and Progress Report
- Budget 2024: Fairness for Every Generation
- Budget 2024 – Attracting Investment for a Net-Zero Economy
- Backgrounder: Economic Growth and Productivity
- 2030 Emissions Reduction Plan: Clean Air, Strong
Economy
- Net-zero emissions by 2050
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SOURCE Natural Resources Canada