Canada, Germany announce $600M hydrogen deal in Cape Breton

Federal Minister of Energy and Natural Resources Jonathan Wilkinson announced a $300-million commitment to a clean hydrogen alliance with Germany that has been in place for nearly two years during a visit to Port Hawkesbury, N.S., on Wednesday.

"Wind right now is perhaps the most cost-effective way to generate electricity,” Wilkinson said.

In August 2022, Prime Minister Justin Trudeau and German chancellor Olaf Scholz signed the agreement in Stephenville, N.L.

"Our target is clear - working towards initial exports of Canadian hydrogen to Germany by 2025”, Trudeau said at the time.

On Wednesday, Germany announced it would match Canada's commitment for a joint total of $600 million for Atlantic Canadian hydrogen production and export.

"We are one step closer to the first shipment of green ammonia across the Atlantic,” said Karina Hauslmeier, deputy head of Commission for the German Embassy in Canada.

Everwind Fuels has started construction of a proposed $6-billion green hydrogen and ammonia production facility in Point Tupper. Port Hawkesbury Mayor Brenda Chisholm-Beaton is excited about the chance to help lower greenhouse gas emissions and to create jobs, if things go as planned.

"Well, 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 couldn’t say how many Canadian companies might have a chance to bid to supply the German market with hydrogen, noting the funds will be allocated through a competitive auction process expected to be launched by year's end.

"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.

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