Canada, Germany commit $600M for hydrogen export in Atlantic Canada

The Canadian and German governments are taking the next step to launch Atlantic Canada's hydrogen export industry, announcing a multimillion-dollar commitment Wednesday for projects in Eastern Canada.

Ottawa is investing up to $300 million to support hydrogen exports to Germany, Europe's biggest economy, while the German government is matching the contribution.

«The announcement being made today is a big deal,» said energy minister Jonathan Wilkinson in Cape Breton, N.S., citing the potential of the investment to create jobs, lower greenhouse gas emissions, and provide energy security for Germany.

«It is a win, win, win.»

The $600-million announcement comes as the war in Ukraine has disrupted the global energy supply.

Russia, a significant supplier of natural gas to Europe, has been accused of holding back supply in retaliation for crippling sanctions imposed by Germany and other Western allies for its full-scale invasion of Ukraine.

«Since the summer of 2022, we have seen many signs that Canada is serious about advancing the clean hydrogen economy,» said Karina Häuslmeier, the deputy head of mission at the German embassy in Ottawa.

«Today, I want to assure you that Germany is equally committed.»

Several projects in Nova Scotia and Newfoundland that would convert wind energy into what some call «clean hydrogen» are in the planning stages.

It's hoped these and others will play a significant role in fighting climate change. Unlike other sources of hydrogen that use fossil fuels, these projects would use wind turbines to create hydrogen from water.

Wilkinson has been a driving force behind the federal government's hydrogen strategy, often mentioning that he drives a hydrogen-powered vehicle.

He conceded at Wednesday's news conference,