In order to diversify away from Russian energy, German energy corporations Uniper (UN01.DE) and E.ON (EONGn.DE) want to work on deals with Canada’s EverWind to buy a total of 1 million tonnes of green ammonia per year starting in the middle of the decade.
Both companies signed memorandums of understanding (MoUs) during a visit to Canada by German Chancellor Olaf Scholz and Economy Minister Robert Habeck, who were accompanied by the CEOs of Volkswagen (VOWG p.DE), Uniper (UN01.DE), and Siemens Energy (ENR1n.DE).
“This is an important step not only to strengthen our bilateral economic relations, but also for a future-oriented and sustainable energy supply,” Scholz said in a statement.
The agreement comes ahead of the signing of a joint declaration by Canada and Germany to form a bilateral hydrogen alliance later on Tuesday.
The ammonia will come from EverWind’s proposed Point Tupper facility, which is set to open for business in early 2025. Green ammonia generated by renewable energy can be used as a gas or converted into green hydrogen to power the local economy.
Once agreed upon, the deliveries “will facilitate decarbonization across Germany and other European countries while reducing Germany’s dependence on fossil fuel-based products from Russia” according to Uniper.