Federal Minister of Energy and Natural Resources Jonathan Wilkinson announced a significant $300-million commitment from Canada to a clean hydrogen alliance with Germany during a visit to Port Hawkesbury, N.S., on Wednesday. This announcement marks the continuation of a partnership initiated nearly two years ago.
“Wind right now is perhaps the most cost-effective way to generate electricity,” Wilkinson emphasized during the announcement.
The original agreement was signed by Prime Minister Justin Trudeau and German Chancellor Olaf Scholz in August 2022 in Stephenville, N.L. At that time, Trudeau highlighted the ambitious target of beginning Canadian hydrogen exports to Germany by 2025.
On Wednesday, Germany announced it would match Canada’s commitment, bringing the total investment to $600 million dedicated to hydrogen production and export in Atlantic Canada.
“We are one step closer to the first shipment of green ammonia across the Atlantic,” said Karina Hauslmeier, deputy head of the Commission for the German Embassy in Canada.
Construction is already underway by Everwind Fuels on a proposed $6-billion green hydrogen and ammonia production facility in Point Tupper. Port Hawkesbury Mayor Brenda Chisholm-Beaton expressed excitement about the potential benefits for the region.
“It’s certainly super exciting. It’s going to benefit our region. It’s going to benefit our province,” said Chisholm-Beaton. “It’s definitely going to create, locally, thousands of construction jobs and hundreds of permanent full-time jobs as the construction phases come to an end.”
Wilkinson noted that while the exact number of Canadian companies eligible to bid on supplying the German market with hydrogen remains undetermined, the funds will be allocated through a competitive auction process expected to launch by the end of the year.
“I would say those that are leading at this point – in terms of the development of their thoughts and processes, their environmental assessments and their engineering designs – are probably going to be the ones who access this first,” Wilkinson said.
