Canada invests $300 mn to boost clean hydrogen trade with Germany

Canada’s Energy Minister Jonathan Wilkinson announced a commitment of up to CA$300 million (US$216.89 million) to support clean hydrogen trade with Germany, one of Canada’s closest allies.

The hydrogen truck manufacturer Nikola has recently opened the first commercial hydrogen refueling station in Ontario, Canada. The station was opened together with IT industries, Nikola‘s first dealer partner in the country.

The funds will be allocated via an auction process expected to launch by year-end, following European Commission review and a matching commitment from Germany.

As part of the agreement, Germany will get access to clean energy from Canadian producers.

Part of the Canada-Germany Hydrogen Alliance, the CA$300 million plan aims to help Canadian companies enter the German market for clean hydrogen and ammonia. The Alliance was announced in August 2022 aiming to clean hydrogen to Germany within three years.

The announcement follows the launch of the Clean Hydrogen Investment Tax Credit in June by the Government of Canada.

In a statement, Canada’s Minister stated, “Canada-Germany clean hydrogen trade will help create sustainable jobs for Canadian workers, enhance energy security for our allies, and lower emissions on both sides of the Atlantic. Today, we are one step closer to a thriving transatlantic hydrogen economy, providing enormous economic opportunities for Canadians from coast-to-coast-to-coast, and notably, right here in Atlantic Canada”.