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canada-germany-plan-hydrogen-export-auctions-with-h2global
canada-germany-plan-hydrogen-export-auctions-with-h2global

Canada, Germany plan hydrogen export auctions with H2Global

Canada has signed a Memorandum of Understanding (MoU) to sell hydrogen produced on its east coast to Germany, through the European nation’s H2Global Foundation.

Signed on Monday (March 18) by Canadian Energy Minister Jonathan Wilkinson and German Vice-Chancellor Robert Habeck, the agreement plans to establish a dedicated “bilateral window” through Germany’s H2Global Foundation to support commercial transactions between Canadian producers and German industry.

The window will host coordinated supply and demand auctions to connect hydrogen exporters with German buyers to complete “commercially binding contracts.”

The H2Global initiative is designed to accelerate the renewable hydrogen market ramp-up through an auction-based instrument. The initiative buys hydrogen and derivatives at competitive global prices and sells them to the highest EU-based bidder.

Read more: BMWK establishesH2Global Foundation’ to provide new hydrogen funding platform

Germany’s Habeck said, “We believe that a joint H2Global financing window can play an important role in closing the remaining price gap. This will support the development of hydrogen production capacity with the aim of increasing the availability of hydrogen.”

Building on the Canada-Germany Hydrogen Alliance, signed in August 2022, Canada has said the move will support Europe “displace imports of Russian oil and gas and fight climate change.”

Read more: Canada-Germany Hydrogen Alliance targets first exports by 2025

Originally targeting the first exports by 2025, the new MoU between the partners comes less than 12 months after Germany estimated 50-70% of its 95-130TWh hydrogen demand in 2030 would be met by imports.

Wilkinson said the announcement was a “testament” to Canada’s position as a “global supplier of choice” for clean energy, adding the agreement would enable the creation of sustainable jobs, economic growth, emissions reduction and energy security.

One of the key projects under the transatlantic partnership is World Energy GH2’s Project Nujio’qonik in Newfoundland and Labrador.

Planned to produce around 400,000 tonnes of EU “RFNBO-compliant” green ammonia in its first phase before scaling up to 1.2 million tonnes per year, the Canadian Government last month (February 2024) signed a definitive agreement for a CAD $128m loan to support its development.

Read more: Canada loans CAD $128m for World Energy GH2’s green hydrogen export project

The government also backed EverWind Fuels’ green hydrogen and ammonia hub in Nova Scotia with a CAD $125m loan.

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