The governments of Canada and Germany signed a cooperation agreement on the production and transport of renewable (or green) hydrogen yesterday Tuesday, on the second day of German Chancellor Olaf Scholz' visit to Canada.
German Economy Minister Robert Habeck and Canadian Energy Minister Jonathan Wilkinson signed the agreement at a ceremony in Stephensville, Newfoundland, in the presence of German Chancellor Olaf Scholz and Canadian Prime Minister Justin Trudeau.
In his speech, Trideau referred to a «historic step towards our common future». «Our goal is clear: To work towards the first exports of Canadian hydrogen to Germany by 2025,» the Canadian prime minister added: «The benefits are also clear: creating jobs for the middle class and local growth while providing clean energy that will help fight climate change.».
For his part, the German chancellor said the agreement would upgrade cooperation between the two countries to a more «strategic level». Olaf Scholz, who was accompanied by Vice Chancellor Habeck and a large delegation of German businesses and industries, called the agreement «an important step not only for strengthening bilateral economic relations, but also for a sustainable energy supply in the future.».
Newfoundland in Canada is considered a location that is conducive to renewable hydrogen production, as it is often subject to gusty winds and sparsely populated.
Pure hydrogen (renewable hydrogen or green hydrogen) is produced through the electrolysis of water and the use of electricity from renewable sources and does not emit greenhouse gases during its production.
Currently, the cost of producing renewable hydrogen is higher compared to the natural gas market, but experts believe that green hydrogen can reduce energy bills in the medium term.
German energy companies Eon and Uniper announced yesterday (Tuesday) that they have signed a memorandum of understanding with Canada's Everwind on the sidelines of German-Canadian talks aimed at importing renewable hydrogen from Canada on a large scale from 2025.
At the same time, the companies are seeking to reach an agreement to buy up to 500,000 tonnes per year of ammonia - the chemical used in hydrogen transport.
A green hydrogen and ammonia plant is to be built in the village of Point Tapper, in the Canadian province of Nova Scotia. «It is at an advanced stage of development and commercial operation is expected to start in early 2025,» according to Eon.
Also on Tuesday, German automaker Mercedes-Benz signed a memorandum of understanding with the Canadian government to promote cooperation and economic opportunities in the supply chain for electric vehicles in Canada.
