Germany aims to create an international hydrogen trade corridor with Canada and other producers as it looks to lock in a diverse mix of imports.
First imports from Canada, where multiple green hydrogen projects are in development, are targeted for 2025, the two countries say in a joint declaration signed this week.
Germany has made overtures to several potential hydrogen suppliers including India, Norway and the UAE in recent months as the gas crisis triggered by Russia’s invasion of Ukraine highlights its need for diverse low-carbon energy supplies in future decades.
But the accord with Canada is arguably its most ambitious alliance to date, with detailed proposals on trading standards and commitments to drive forward the industry’s supply chain at pace over the next few years. Germany ultimately expects to rely on imports for at least half of its clean hydrogen needs.
“We aim to build up a transatlantic supply chain for green hydrogen” Habeck, German vice-chancellor
“The hydrogen alliance between Canada and Germany is a significant milestone as we accelerate the international market rollout of green hydrogen and clear the way for new transatlantic cooperation,” says German vice-chancellor Robert Habeck.
“Specifically, we aim to build up a transatlantic supply chain for green hydrogen. The first shipments from Canada to Germany are to begin as early as 2025.”
The two sides have agreed to align codes, standards and regulation relating to the production, distribution, trade and consumption of hydrogen. They also aim to develop a common methodology for the determination of the carbon intensity of hydrogen.
Germany and Canada also “aim to closely collaborate on all aspects necessary to kickstart the hydrogen economy and to create a transatlantic supply chain for hydrogen well before 2030”, according to the declaration.
The declaration also calls for the use of co-financing mechanisms, including Germany’s existing H2Global initiative, to support the development of trade between the two countries.
The deal with Germany comes as Canada, which signed a less-detailed hydrogen accord with the Netherlands in October last year, looks to position itself as a major green hydrogen exporter to Europe, Asia and the US, based on its renewable power resources and established trade routes.
The scale of the deal has given weight to ambitious developer plans. Privately-owned US clean energy company World Energy GH2 aims to complete the first phase of a C$12bn ($9.2bn) green hydrogen production and distribution complex in Newfoundland and Labrador by 2024.
The Boston-based firm says it is in active talks with potential investors to come in as minority shareholders in the project, which is ultimately expected to have 1.5GW of electrolysis capacity powered by wind generation. The developer says the project, which targets 250,000t/yr of production, can play a key role in meeting the aims of the hydrogen trade deal with Germany.
C$12bn - World Energy GH2 investment in Canadian facility
“Our project will serve as a catalyst for other green hydrogen projects in Atlantic Canada and around the world. We’re committed to working with local communities to build a project we’ll all be proud of,” says John Risley, chairman of World Energy GH2.
Rival project developer Everwind this week signed two memorandums of understanding with German energy companies Uniper and Eon to supply a total 1mn t/yr of green ammonia from its project at Point Tupper in the province of Nova Scotia.
Canada’s hydrogen technology sector also strengthened its international ties during this week’s talks. Technology company ABB has invested in Canadian electrolyser manufacturer Hydrogen Optimized as part of a wider collaboration under which the two firms will jointly market their respective green hydrogen technologies. Under the deal they will offer Hydrogen Optimised’s ‘Ruggedcell’ electrolysers in combination with ABB’s high-power rectifiers.
“Following a rigorous validation of the Ruggedcell technology, we are confident that, in combination with ABB’s high-power rectifiers, it can become a category leader in the largescale green hydrogen segment,” says Joachim Braun, division president for process industries at ABB.
Author: Stuart Penson