Germany and Canada on Tuesday signed a cooperation agreement for the production and transport of hydrogen fuel to the European country, as well as for the construction by 2030 of a transatlantic supply chain, in order to have already the first deliveries from 2025.
The agreement was ratified during the second day of German Chancellor Olaf Scholz’s official trip to Canada in the remote town of Stephenville, located in the eastern province of Newfoundland and Labrador, at a ceremony also attended by Canadian Prime Minister Justin Trudeau.
The agreement is a “historic step forward” for the shared future between Germany and Canada, as celebrated by a Trudeau, who is confident that the first exports will be ready by 2025. At the same time, he stressed that jobs will be created and the local economy will grow while betting on clean energies to counteract climate change.
Chancellor Scholz, for whom the agreement not only strengthens the economic relations between the two countries, but is also “an important step” for a sustainable energy supply for the future, has expressed himself along the same lines.
The province of Newfoundland and Labrador is considered a favorable location for renewable hydrogen production, due to the particularities of the region, which is very windy and sparsely populated. The use of hydrogen, while costing more to produce than buying natural gas, does not produce greenhouse gases.
For their part, German energy companies Eon and Uniper have reported signing a memorandum of understanding with Canada’s Everwind on the sidelines of these talks with the aim of importing hydrogen from 2025.
Each of these companies is seeking an agreement to purchase up to 500,000 tons per year of ammonia, the chemical used to transport hydrogen. In turn, a hydrogen and green ammonia production plant will be built in the town of Point Tupper in the Canadian province of Nova Scotia.