Canada, Germany sign MOU to trade hydrogen from Atlantic Canada

Canada and Germany have signed a deal to advance the trade of hydrogen out of Atlantic Canada between the two countries.

The federal government says the memorandum of understanding will accelerate commercial-scale hydrogen trade, and secure early access for hydrogen producers in the German market.

Essentially the agreement, the details of which have to be finalized by June 30, will see Germany’s H2Global Foundation help to connect Canadian producers with German buyers.

Federal environment Minister Jonathan Wilkinson says the deal will give certainty for Canadian companies to make investments in hydrogen production and export facilities by giving them a “fair price” for the product.

For Newfoundland and Labrador, Wilkinson says it is another step toward companies being able to sign agreements with German companies.

He says the companies need to go through the approval process and early front-end engineering work, but they also need certainty around the price. That, argues Wilkinson, will lead to offtake deals that will allow projects to move forward rapidly.