Some energy experts warn a deal to sell Canadian hydrogen to Germany will serve as only a small, far-off and expensive part of the solution to Europe's energy crisis.
German Chancellor Olaf Scholz and Prime Minister Justin Trudeau are set to sign a hydrogen agreement in Stephenville, N.L. next week, during Scholz's official visit to Canada.
Germany typically gets about half of its natural gas from Russia and is looking for both short and long-term solutions to wean itself from Russian exports. In order to be shipped, the hydrogen would likely need to be cooled into a liquid, loaded into a specially adapted pipeline or tanker, and warmed again when it reached its destination.Most hydrogen production globally comes from converting natural gas to hydrogen and carbon dioxide. If the latter is emitted into the atmosphere, the hydrogen is referred to as "grey.
He said the technology needs to improve and more investment needs to be made before the cost is even relatively comparable with it's natural-gas derived alternative.