Canada and Germany aim to start hydrogen deliveries in 2025 | Your money

STEPHENVILLE, Newfoundland (AP) — German and Canadian leaders said Tuesday that a new hydrogen pact will launch a transatlantic hydrogen supply chain, with 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 power to produce hydrogen and ammonia for export.

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

“The market case and the need to evolve was coming and wasn’t quite there yet. Russia’s illegal and unjustifiable invasion of Ukraine means everything is accelerating,” Trudeau said.

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

“Our need could be even higher under the new circumstances,” Scholz said.

Natural gas prices jumped as Russia reduced or halted natural gas flows to a dozen European Union countries, fueling inflation and increasing the risk that Europe would plunge into recession. Germans have been told to reduce their gas consumption now so that the country will have enough for the coming winter.

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

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