Canada and Germany plan to start supplying hydrogen in 2025 | Business news

STEPHENVILLE, Newfoundland (AP) — The leaders of Germany and Canada said Tuesday that a new hydrogen pact would kick-start a transatlantic hydrogen supply chain, with the first deliveries expected in just three years.

Prime Minister Justin Trudeau and German Chancellor Olaf Scholz signed the agreement in the port city of Stephenville, Newfoundland. A Canadian company plans to build a zero-emissions plant that will use wind energy to produce hydrogen and ammonia for export.

Hydrogen is seen as part of Europe’s plan to reduce dependence on Russian fossil fuels, especially in light of the war in Ukraine and recent cuts in Russian natural gas supplies to Germany and other countries.

“The market situation and the need to expand was getting closer, but it wasn’t here yet. Russia’s illegal and unjustified invasion of Ukraine means that everything is accelerating,” Trudeau said.

Scholz said Canada is Germany’s partner of choice as the country moves away from dependence on Russia for energy supplies.

“In the new circumstances, our needs may be even greater,” Scholz said.

Natural gas prices rose as Russia cut or halted natural gas supplies to a dozen European Union countries, fueling inflation and raising the risk that Europe could slide into recession. Germans have been urged to reduce gas consumption now so that the country has enough for the winter.

Earlier on Tuesday, the Canadian government signed separate agreements with Volkswagen and Mercedes-Benz that will allow the two German automakers to secure access to Canadian raw materials for electric vehicle batteries. The deals include Canadian cobalt, graphite, nickel and lithium.

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