Canada signs hydrogen deal with Germany, cites need to shun Russia energy

A hydrogen train approaches the station of Wehrheim near Frankfurt, Germany, as the sun rises on Tuesday, Dec. 12, 2023. (AP Photo/Michael Probst)

OTTAWA -

Canada, citing the need to shun Russian energy, on Monday signed an agreement with Germany that it said would accelerate work towards the commercial-scale trade of clean hydrogen fuel.

The two nations inked a memorandum of understanding that commits them to backing transactions between Canadian hydrogen producers and Germany's industrial manufacturing and energy distribution sectors.

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"Canada is working with European allies to displace imports of Russian oil and gas and fight climate change with clean Canadian hydrogen. Canada can be a world-leading producer and exporter of clean hydrogen," the federal natural resources ministry said in a statement.

In August 2022, Canadian Prime Minister Justin Trudeau and German Chancellor Olaf Scholz agreed to establish a transatlantic supply corridor while coordinating policies to attract investments in hydrogen projects. The deal envisaged Canadian exports to Germany starting in 2025.

Hydrogen is a zero-carbon fuel best suited for powering large industrial machines, heavy vehicles and for heating.

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More than 80 low-carbon hydrogen production projects have been announced in Canada to date. Last year one of the first projects delayed its start by one year because the operator's European customers needed more time to develop special infrastructure to handle the product.

(Reporting by David Ljunggren, Editing by Louise Heavens)

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