Prime Minister Justin Trudeau and German Chancellor Olaf Scholz applaud as Natural Resources Minister Jonathan Wilkinson and German vice-chancellor Robert Habeck shake hands after signing an agreement in Stephenville, N.L., on Aug. 23, 2022.
Adrian Wyld/The Canadian Press
Natural Resources Minister Jonathan Wilkinson says he expects to know the final investment decisions on at least two new hydrogen projects in Atlantic Canada before the end of the year.
However Wilkinson says there are still a lot of financial uncertainties, and a lot depends on new government supports.
Canada and Germany signed a pact last August to create a new hydrogen supply chain from by 2025.
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Wilkinson says progress has been steady in the last seven months and he believes things are on track to meet that timeline as long as some of the financial risks are addressed.
Canada’s budget last week promised an investment tax credit for low-emission hydrogen worth nearly $18 billion over the next 12 years.
Wilkinson says a policy known as “contracts for difference,” which could see the new Canada Growth Fund offer some price guarantees for hydrogen, is also a critical element of meeting the timeline.