Joint declaration of intent between the Government of Canada and the Government of the Federal Republic of Germany on establishing a Canada-Germany Hydrogen Alliance

The Government of Canada and the Government of the Federal Republic of Germany, hereinafter referred to as “the Participants”,

Emphasizing their strategic partnership, long-standing and close friendship and determination to work together through enhanced bilateral and multilateral cooperation to address climate change, accelerate the global energy transition and safeguard international energy security;

Acknowledging that renewable and low-carbon hydrogen and its derivatives will play an essential role in meeting global energy needs and decarbonizing our industries as part of a people-centred energy transition towards climate neutrality and in the context of the broader climate imperative;

Intending to accelerate market growth for hydrogen, in particular from renewable sources, including through the development of robust supply chains;

Further highlighting their complementary strengths and interests with respect to hydrogen, with Canada aiming to become a major producer and exporter of hydrogen as well as related clean technologies, while attracting foreign direct investment, and Germany aiming to import significant amounts of renewable hydrogen to decarbonize its hard-to-abate sectors in line with its 2045 climate neutrality target;

Considering that Germany has chosen to focus on hydrogen produced from renewable electricity to advance its energy transition, and that there is an opportunity for Canada to leverage its rich resources, and world leading clean technology sector, to become a key trading partner with Germany;

Considering that Canada also seeks opportunities to develop a broad range of zero or ultra-low carbon hydrogen and derivative products, and commits to developing clean hydrogen from all sources and production methods, based on the comparative resource advantages of each region;

Recognizing the need to work together to advance and ensure energy justice for disadvantaged communities, given that both countries face converging economic, health, and climate crises that have exposed and exacerbated inequities for those who have been historically underserved, marginalized, and adversely affected by systemic racism, poverty, and decades of neglect;

Emphasizing the G7 Hydrogen Action Pact and the Participants’ joint commitments therein for accelerating and strengthening their joint action in the field of hydrogen, such as for identifying and closing existing gaps for the ramp-up of hydrogen value chains;

Recognizing that the need for strategic partnerships, and international collaboration form key pillars of both the Hydrogen Strategy for Canada and the German National Hydrogen Strategy;

Recognizing the benefits of such a bilateral hydrogen trade relationship and of working together in supporting the growth of the hydrogen market;

Have reached the following understanding:

1. ESTABLISHMENT OF THE CANADA-GERMANY HYDROGEN ALLIANCE
   1. The Participants aim to closely collaborate on all aspects necessary to kickstart the hydrogen economy and to create a transatlantic supply chain for hydrogen well before 2030, with first deliveries aiming for 2025.
   2. The Participants will therefore establish the Canada-Germany Hydrogen Alliance (‘the Alliance’) to:
      1. explore the opportunities of a bilateral trade relationship pertaining to hydrogen and its derivatives as well as hydrogen-related technologies;
      2. accelerate the expansion of the hydrogen industry, the improvement of infrastructure and supply chains; and
      3. respect their climate commitments.
   3. The Participants understand that:
      1. In Canada, jurisdiction over energy issues and hydrogen development lies to a large extent with the provinces and territories;
      2. They will work with sub-national governments to identify unique opportunities and interests, in support of their individual economic and environmental climate objectives, as well as implementation of the Alliance.
2. ALLIANCE INITIATIVES
   1. The Participants will:
      1. facilitate the trade of hydrogen and its derivatives between Canada and Germany, with a target to have initial exports begin in 2025;
      2. Aim to explore existing financial support mechanisms, including through Germany’s H2Global initiative or other (co-)financing mechanisms through joint market analysis (e.g. demand levels for import, potential production capacity for export and timelines) to help inform government and industry investment planning.
   2. The Government of Canada will strengthen collaboration with provinces and territories, through the Regional Energy and Resource tables, and the private sector (leveraging programs such as the $1.5B Clean Fuels Fund, and the $8B Strategic Innovation fund Net-zero accelerator, and the Canada Infrastructure Bank) to accelerate the development of Canada’s resources for the production of hydrogen and its derivatives, for domestic use, and for export to Germany, the broader European market, and Asia, while contributing to domestic energy needs and decarbonization targets domestically and internationally.
   3. The Government of the Federal Republic of Germany will support domestic importers and consumers of hydrogen and its derivatives in establishing an international trade corridor with Canada and other partner countries, as a means to diversify Germany’s future hydrogen import mix and to contribute to European energy security, through Germany’s H2Global initiative.
   4. To enable the trade of hydrogen and its derivatives between Canada and Germany, the Participants will:
      1. strengthen and accelerate ongoing bilateral and multi-lateral collaboration on the development and alignment of codes, standards, and regulation, pertaining to the production, distribution, trade, and use of hydrogen, where feasible; and
      2. develop a common methodology for the determination of carbon intensity of hydrogen which can be used to help define what clean, low carbon, and renewable hydrogen are (e.g. through the Clean Energy Ministerial, International Partnership for Hydrogen and Fuels Cells in the Economy, and the G7-Hydrogen Action Pact).
   5. The Participants will advance collaborative bilateral and multilateral Research, Development, & Demonstration (R, D&D) efforts that will support hydrogen production, infrastructure, and supply chains, based on the existing, long-lasting collaboration networks in R, D&D between both countries in energy- and hydrogen-related research.
   6. The Participants will collaborate on enabling factors, which could include:
      1. assessing current and future infrastructure requirement;
      2. facilitating and encouraging the establishment of MOUs between Canadian and German ports, both as conduits for trade, and as a mean to decarbonize operations; and
      3. facilitating agreements between marine shippers and ports in both markets.
   7. The Participants intend to facilitate and support industry to industry cooperation on Canadian-German hydrogen flagship projects (whether in Canada, or in Germany) through:
      1. a designated task-force within the Canada-Germany Energy Partnership;
      2. in-person engagement sessions in Canada and in Germany; and
      3. dedicated workshops on various aspects of the supply chain.

      Through this process, the Participants will facilitate industry discussion on collaboration opportunities and engagement within available government funding resources.

3. INTELLECTUAL PROPERTY

   If any intellectual property rights arise from the application of this Joint Declaration of Intent (JDOI), the Participants will address them in a separate and appropriate instrument.

4. REVIEW OF PROGRESS
   1. The Participants understand that:
      1. For the Government of Canada, the Minister of Natural Resources in collaboration with other key federal departments will oversee the Alliance, its initiatives and continuous review;
      2. For the Government of the Federal Republic of Germany, the Minister of Economic Affairs and Climate Action in collaboration with other key federal departments will oversee of the Alliance, its initiatives and continuous review.
   2. The Participants also understand that:
      1. they will conduct an annual review of activities under the Alliance, with a view to exchanging information on progress of its jointly decided initiatives and consideration of future opportunities for collaboration;
      2. the existing Canada-Germany Energy Partnership, including the dedicated government/industry working group, will serve as the mechanism for this review unless otherwise jointly decided.
5. DIFFERENCES IN APPLICATION AND INTERPRETATION

   The Participants will resolve any differences that may arise from the application or interpretation of this JDOI through consultations.

6. STATUS

   This JDOI is not legally binding.

7. FINAL DISPOSITIONS
   1. This JDOI will come into effect on the date of its last signature by the Participants, and will be in effect for five (5) years.
   2. The Participants may renew or modify this JDOI upon their mutual written consent, to ensure it continues to align with priorities identified by both Participants.
   3. Any Participant may terminate the JDOI at any time. They should inform the other Participant in writing of its intention to end the JDOI at least six (6) months prior to termination. The Participants will consult to determine how any outstanding matters should be dealt with upon termination of the JDOI.