Germany is confident Canada will help it to strengthen its energy security in the short-term, with clean hydrogen set to provide a lifelong solution to its energy mix and decarbonisation targets.

Amid a series of bilateral announcements this week, the countries signed on Tuesday evening a declaration of intent to establish a Canada-Germany Hydrogen Alliance. The agreement builds on an energy MOU the countries signed in March 2021, Kallanish notes.

The proposed alliance aims to enable investment in hydrogen projects through “policy harmonisation” and support the development of secure hydrogen supply chains. The creation of a Canada-Germany supply corridor would enable the exports of clean hydrogen to start by 2025, the head of states say.

“As Russia continues to weaponize energy in its illegal war with Ukraine, Canada is working with European partners to strengthen global energy security and accelerate the global clean energy transition,” the Canadian government said in a statement.

Germany’s Chancellor Olaf Scholz said during his visit that Canada “has similar rich natural resources as Russia - with the difference that it is a reliable democracy. We not only share common values, but also a similar view of the world.”

Under the alliance, Canada will “push ahead” with hydrogen production, particularly from renewable electricity, for export to Germany. In turn, the European country will support potential importers and consumers of green hydrogen. The German government said it will examine more closely co-financing of joint projects and set a task force with industry representatives on both sides to promote lighthouse projects together.

Several consortia have presented planned cooperation projects during a green hydrogen trade fair in Stephenville, where the declaration was signed. Green hydrogen will be primarily produced in the Canadian Atlantic provinces of Newfoundland and Labrador, Nova Scotia and New Brunswickare from wind power and shipped to Germany as ammonia.

Prior to Russia’s invasion of Ukraine six months ago, Berlin had hopes to source some of its hydrogen needs from Moscow.