Securing market access for early Canadian export projects
By on April 04, 2024
Governments agree to H2Global funding
Click to learn more. The governments of Germany and Canada have agreed to a bilateral funding window for hydrogen derivative exports, based on the H2Global mechanism.
Following on from the establishment of a Canada – Germany Hydrogen Alliance in September 2022, the two governments have agreed to establish a bilateral funding window for hydrogen derivative exports via the H2Global Foundation. The contracts-for-difference mechanism will connect Canadian exporters with German buyers, helping kick-start one of the world’s first hydrogen supply routes. To achieve this, H2Global will conduct “coordinated supply and demand side auctions”, similar to its first auction already in progress.
The announcement highlights a handful of ammonia-producing export projects underway on Canada’s Atlantic coast, including EverWind Fuels in Nova Scotia, and World Energy GH2, Pattern Energy, and Fortescue in Newfoundland. These projects are “well-positioned to move forward” in the immediate future, and are likely to be candidates for funding via the new scheme.
Canada has over 100 years of experience in hydrogen innovation and is a global leader in hydrogen fuel cell technology and renewable energy. Today’s announcement is a testament to Canada’s position as a global supplier of choice for clean energy and will enable the creation of sustainable jobs, clean economic growth, emission reductions and energy security at home and abroad.
The Honourable Jonathan Wilkinson, Canadian Minister of Energy and Natural Resources in the Canadian government’s official press release, 18 Mar 2024
We welcome the progress made in Canada in the development of several renewable hydrogen and ammonia projects. Although some challenges remain, we believe that a joint H2 Global Financing Window can play an important role in closing the remaining price gap. This will support the development of H2 production capacity with the aim of increasing the availability of hydrogen.
Robert Habeck, German Federal Minister for Economic Affairs and Climate Protection, in the Canadian government’s official press release, 18 Mar 2024
Canada is already in the process of launching its Clean Hydrogen Investment Tax Credit and Clean Technology Investment Tax Credit. These will support both the production of low-carbon hydrogen and the deployment of renewable energy generation in Canada. In recent news, Canada’s export bank announced it would extend a credit facility worth nearly $100 million to assist Nujio’qonik (World Energy GH2) reach financial close.
Mabanaft, Pattern Energy to establish ammonia supply chain between Canada and Germany
Click to learn more. Mabanaft and Pattern Energy executives at the site of the future “New Energy Gate Hamburg”. Source: Mabanaft.
Pattern Energy, lead developer of one of the Atlantic export projects highlighted in the announcement, will work with Germany-based Mabanaft to explore a renewable ammonia supply chain between the Port of Argentia in Newfoundland and Mabanaft’s import terminals in Germany. A potential transaction for the supply of ammonia is being considered (starting in 2027), and Mabanaft is also considering co-investment in the project. Mabanft has already begun feasibility work into upgrading and converting its existing import infrastructure at the Port of Hamburg to receive ammonia imports. “New Energy Gate Hamburg” is set to become Mabanaft’s first major hub for the import, storage and processing of fuels from renewable energy sources.
The planned collaboration will bring energy from Canadian wind to Hamburg!…Thanks to the strong industry here, there is security of supply for the energy-intensive industries. Through cooperation between the Port of Hamburg and our Canadian partners, we will help to create the necessary infrastructure on the Canadian side.
Hamburg’s Senator for Economic Affairs Melanie Leonhard in Mabanaft’s official press release, 18 Mar 2024
As a renewable energy leader in North America, Pattern Energy seeks to partner with energy industry leaders in Europe to fully develop the potential of green fuels production and export infrastructure in North America. The Argentia Renewables project is well positioned to be an early mover in the green hydrogen economy and will serve as an important element in Europe’s energy transition.
Cary Kottler, Chief Development Officer of Pattern Energy in Mabanaft’s official press release, 18 Mar 2024
The LoI was signed in the presence of the German Federal Minister for Economic Affairs and Climate Action Robert Habeck, and Canada’s Minister for Energy and Natural Resources Ian Wilkinson.