Statement From the Minister of Energy and Natural Resources on Atlantic Canada's Hydrogen Opportunity

OTTAWA, ON, March 13, 2025 /CNW/ - Hydrogen is expected to play a key role in powering the economy going forward, and momentum is underway around the world to secure strong, reliable suppliers. Clean hydrogen has the potential as an efficient fuel source to revolutionize key sectors, including heavy industry, energy production and transportation. With the demand for clean hydrogen projected to increase — projections indicate at least a tenfold increase in demand over the next three decades — Canada is uniquely positioned to meet this need. Atlantic Canada in particular is already seeing significant movement to seize the economic opportunity this presents for the region and is expected to create thousands of jobs.

By building on Canada's long expertise in this area, along with the federal government's strong support in this space, including the release of Canada's first-ever hydrogen strategy, and Canada's natural position as a leader in the resources necessary for clean and efficient production, countries like Germany are looking to Canada as reliable supplier of hydrogen they need to power their economy.

In March 2024, Canada and Germany signed an agreement to establish a jointly supported bilateral window to accelerate commercial-scale hydrogen trade, secure early access for clean Canadian hydrogen producers in the German market and support the good jobs that come with it while strengthening our two countries' efforts to fight climate change and enhance energy security. Since then, we have made significant progress toward realizing these goals. In July 2024, the Government of Canada committed up to $300 million to this initiative to support clean hydrogen trade with Germany, with a matching $300-million contribution from Germany.

Last fall, the proposed auction parameters for the Canada–Germany clean hydrogen window were submitted to the European Commission. Canada has since been working collaboratively with Germany and the European Commission to complete the review of these parameters and allow the competitive auction process to be launched as soon as possible.

To support a strong hydrogen industry in Atlantic Canada, the federal government, working with provinces, has taken significant strides over the last year. In fall 2024, the federal government passed Bill C-49, which will help unlock the enormous potential of offshore renewable energy, which will enable the development of hydrogen and generate thousands of jobs while attracting billions in investment and creating new economic opportunities in Nova Scotia and Newfoundland and Labrador.

This legislation built on work that had already been done to unlock the power of offshore wind in Atlantic Canada, including the regional assessments, which published final reports earlier this year, laying the foundation for development of offshore wind in the region. Nova Scotia has passed mirror legislation, which came into force at the end of January 2025, which will allow it to deliver on its goal of conducting a first call for bids for offshore wind in 2025. Similar legislation is making its way through the Newfoundland and Labrador legislature.

In addition, the federal government has made investments over the past year to spur development of Atlantic Canada's vast offshore wind potential. Canada, Nova Scotia and Newfoundland and Labrador also joined the Global Offshore Wind Alliance, which will allow us to gather lessons learned from countries with long-established offshore wind industries and to accelerate development.  

Canada's abundant natural resources, reliable economy, skilled workers, long history as a leader in the hydrogen space and commitment to sustainability give us a competitive advantage with our international partners. Momentum is underway, and Atlantic Canada hydrogen players are well positioned to seize on these export opportunities. They will use Atlantic Canada's abundant and untapped wind resources and immediate proximity to Atlantic shipping routes to build on our history as a reliable supplier and continue to power the world with the energy it needs.

The Honourable Jonathan Wilkinson
Minister of Energy and Natural Resources

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SOURCE Natural Resources Canada

Contacts: Media Relations, Natural Resources Canada, 343-292-6096, [email protected]; Carolyn Svonkin, Director of Issues Management, Office of the Minister of Energy and Natural Resources, [email protected]