Canada launches H2Global auction
By on August 20, 2024
CAD 300 million for exports to Europe
Click to learn more. Markus Exenberger, Executive Director of H2Global Foundation (left) and The Honourable Jonathan Wilkinson, Canadian Minister of Energy and Natural Resources (right) at the announcement in Canada this month.
The Canadian government will allocate up to CAD 300 million for hydrogen & derivative exports to Europe, via a H2Global auction scheme. This funding commitment is expected to be matched by the German government, with the tender process set to launch before the end of this year. The new scheme is part of the joint Canada-Germany Hydrogen Alliance, which will facilitate hydrogen supply chains across the Atlantic.
H2Global is excited to participate in this ground-breaking agreement between Canada and Germany, which marks a step towards a sustainable future. This commitment strengthens transatlantic energy ties and builds on the successful first H2Global pilot auction that resulted in Europe securing significant imports of renewable ammonia.
Markus Exenberger, Executive Director of H2Global Foundation in his organisation’s official press release, 14 Aug 2024
Canada is a reliable supplier of clean energy to the world. By ensuring Germany’s access to clean Canadian hydrogen, we can help secure good jobs at home while meeting the energy needs of our allies abroad in the face of Russian energy intimidation and the climate crisis. The decision by the Governments of Canada and Germany to work to establish a hydrogen trade corridor using the H2Global tendering process will create jobs, drive economic growth, enhance our collective energy security, and drive decarbonization internationally.
The Honourable Jonathan Wilkinson, Canadian Minister of Energy and Natural Resources in H2Global’s official press release, 14 Aug 2024
The results of H2Global’s first-ever ammonia auction were recently announced, with Fertiglobe committing to ammonia exports from Egypt to Europe between 2027 and 2033. The total contracts-for-difference amount paid as subsidies will be €397 million. H2Global Co-founder Timo Bollerhey explained the results in-depth in an online presentation, and will also appear as a keynote presenter at the AEA’s upcoming global conference in New Orleans, USA this November. For its next export destinations, H2Global is considering the establishment of similar auction schemes in India and the USA.
As for likely recipients of funds in the new Canadian scheme, earlier this year we highlighted a series of under-development ammonia projects on Canada’s east coast. EverWind Fuels in Nova Scotia, as well as Pattern Energy, World Energy GH2, and Fortescue in Newfoundland are all considered “well-positioned to move forward” by Canada’s Ministry of Energy and Natural Resources. World Energy GH2 recently presented an update on Project Nujio’Qonik, which is aiming to produce 400,000 tons per year of ammonia exports.