By Jamie Hyland for MiningIR
March 18, 2024 – Hamburg, Germany – In a pivotal move marking a new era of energy cooperation, Canada and Germany have inked a groundbreaking Memorandum of Understanding (MOU) to establish a transatlantic hydrogen corridor. This landmark agreement promises to accelerate the trade of commercial-scale clean hydrogen, opening German market doors to Canadian producers and reinforcing both nations’ commitments to combating climate change and bolstering energy security.
The Honourable Jonathan Wilkinson, Canada’s Minister of Energy and Natural Resources, alongside Robert Habeck, Germany’s Vice-Chancellor and Minister of Economic Affairs and Climate Action, heralded the MOU as a first-of-its-kind bilateral program.
“Canada and Germany have a long-standing friendship and determination to work together to address climate change, accelerate the global energy transition and strengthen international energy security. Canada has over 100 years of experience in hydrogen innovation and is a global leader in hydrogen fuel cell technology and renewable energy. Today’s announcement is a testament to Canada’s position as a global supplier of choice for clean energy and will enable the creation of sustainable jobs, clean economic growth, emission reductions and energy security at home and abroad.”
The Honourable Jonathan WilkinsonMinister of Energy and Natural Resources
As geopolitical tensions amplify energy insecurities, notably with Russia’s manipulative energy tactics amidst its aggression against Ukraine, Canada is stepping up as a crucial ally to Europe. The nation is positioning itself as a global leader in clean hydrogen production and exportation, supported by federal initiatives such as the Clean Hydrogen Investment Tax Credit and the Clean Technology Investment Tax Credit.
“We welcome the progress made in Canada in the development of several renewable hydrogen and ammonia projects. Although some challenges remain, we believe that a joint H2 Global Financing Window can play an important role in closing the remaining price gap. This will support the development of H2 production capacity with the aim of increasing the availability of hydrogen.”
Robert HabeckVice-Chancellor andFederal Minister for Economic Affairs and Climate Protection
The bilateral program aims to establish a dedicated Bilateral Window through Germany’s H2Global Foundation, facilitating direct commercial transactions between Canadian hydrogen producers and German industrial and energy sectors. This initiative will not only provide Canadian hydrogen exporters with a competitive edge but also ensure that Canada remains at the forefront of the global race in supplying clean hydrogen.
At the right, Germany’s Vice-Chancellor and Economy Minister, Robert Habeck, is flanked by Jonathan Wilkinson, Canada’s Minister of Energy and Natural Resources, on the left, highlighting a significant moment in international hydrogen cooperation and industry leadership, in Hamburg, Germany.
Echoing Wilkinson’s sentiments, Habeck expressed optimism about the collaboration, noting the significant progress made in developing renewable hydrogen and ammonia projects in Canada. “We believe that a joint H2 Global Financing Window can play an important role in closing the remaining price gap,” he stated, highlighting the mutual benefits of this partnership.
Under this agreement, Canada and Germany commit to finalizing the Bilateral Window’s terms by June 30, 2024, setting the stage for aligned supply and demand auctions. These auctions aim to secure Hydrogen Purchase Agreements, offering the certainty needed to propel clean Canadian hydrogen projects and quickly bring products to the global market.
This MOU not only reaffirms Canada’s status as a preferred clean energy provider but also promises to unlock opportunities for clean economic growth, job creation, and emission reductions. As these two nations forge ahead, their collaboration stands as a beacon of hope for a sustainable, energy-secure future, setting a precedent for international cooperation in the clean energy sector.
This article was published by: MiningIR
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