Sector News

Germany and Canada in Green Hydrogen Alliance

May 27, 2023

Germany and Canada have teamed up to create what they tout as a “secure and reliable” transatlantic supply chain for green hydrogen.

Not sparing superlatives, the world’s fifth and tenth largest economies say the cooperation dubbed The Hydrogen Alliance will create a paradigm shift in the energy industry, and will be not only a game-changer in the fight against climate change but also a “beacon of hope for the world” that will “change the course of history.”

Within the expected long-term alliance, the partners hope to accelerate the commercialization of green hydrogen, which is produced by electrolyzing water using renewable energy sources such as wind or solar power.

The carbon-neutral energy source with potential to replace fossil fuels and thus curb greenhouse gas emissions is gearing up to play an increasingly important role in the chemical industry,

Over the past two years it has been quiet around the arrangement agreed in March 2021, but the two countries say their projected teamwork is currently gaining recognition in the energy sector.

The division of labor will see Canada export green hydrogen to Germany, where it will be used in various industries, including transportation, power generation and industrial processes. The first shipments could begin as early as 2025, German economics minister Robert Habeck said.

The two countries also plan to collaborate on research and development to drive down the cost of production and improve efficiency.

With its abundant renewable energy resources, Canada sees “significant potential” for green hydrogen production on its own territory. The second largest North American nation also asserts that it is strategically well positioned to export hydrogen to Europe, where demand is expected to grow strongly in the coming years, providing business opportunities for Canadian companies.

Germany, with its strong industrial base, claims leadership in developing hydrogen technologies, and the alliance’s complementary strengths are projected to drive innovation and growth in the renewables sector.

All rolled into one, the alliance participants say their work will accelerate the transition from fossil fuels to renewable energy sources such as green hydrogen, which will in turn reduce greenhouse gas emissions, create new jobs, drive economic growth and support the Paris Agreement’s goal of limiting global warming to 1.5 degrees Celsius.

Specific projects have not yet been revealed, nor any industrial partners named.

By: Dede Williams


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