Montreal's Port: Pioneering Green Hydrogen Solutions for Europe

Written by: Juan David Rodriguez Torres

Edited by: Louis Chenot

In 2020, the Honourable Seamus O’Regan, Canada’s Minister of Natural Resources, launched the Hydrogen Strategy for Canada, an ambitious framework to establish Canada as a global leader in hydrogen production (Natural Resources Canada, 2020). Since then, the Port of Montreal has taken essential steps to boost sustainable energy production. Their strategy has focused on green hydrogen to help Canada meet its zero greenhouse gas emissions goal. Changes in this sector are significant, as commercial shipping transports over 80% of global goods and is responsible for roughly 3% of worldwide greenhouse gas emissions (Port of Montreal, 2020). The International Maritime Organization (IMO) aims to reduce greenhouse gas emissions associated with commercial shipping by 50% by the year 2050 (Port of Montreal, 2020). Green hydrogen, produced through electrolysis using renewable energy, could be a pivotal solution in decarbonizing transportation, manufacturing, and other sectors with high energy demand (International Energy Agency, 2023).

Quebec's abundant hydroelectric power positions Montreal as an ideal location for efficient hydrogen production. Concurrently, as the European Union ramps up its transition to green energy, countries like Germany and France are actively seeking reliable partners to help achieve their net-zero targets. This shared objective could be the grounds for increased collaboration between Canada and Europe. In response to Russia’s weaponization of energy amid its unlawful war in Ukraine, Canada has collaborated closely with its European allies to enhance global energy security and expedite the clean energy transition (Natural Resources Canada, 2022). As Canada’s second-largest port, Montreal benefits from strong maritime infrastructure, direct shipping routes to major European ports, and well-established logistics networks that facilitate hydrogen exports. Additionally, its proximity to key industrial centers in both Canada and the United States further solidifies its position as a critical hub for hydrogen production and distribution throughout North America.

In June 2021, the Port of Montreal partnered with Greenfield Global to develop sustainable energy solutions, including green hydrogen, ethanol, and methanol—diversifying energy sources for the maritime industry (Port of Montreal, 2022). Later that same year, the Port of Montreal and the Port of Antwerp launched the first green shipping corridor in the North Atlantic, promoting the use and trade of renewable fuels and clean technologies for ships (Port of Montreal, 2022). By early 2024, Canada and Germany reinforced their commitment by establishing a dedicated shipping route for hydrogen, speeding up large-scale trade and strengthening Canada's renewable energy credentials (Lewis, 2024). By becoming a green hydrogen hub, Montreal—and Canada as a whole—will benefit significantly. Generating energy without fossil fuels will help Canada drastically reduce its greenhouse gas emissions. At the same time, the expanding sector could create thousands of jobs, attract substantial investment, and further solidify Canada's financial ties with Europe, an increasingly vital market for sustainable energy, which is expected to reach almost $12 trillion by 2050 (Natural Resources Canada, 2020).

However, transitioning to a green hydrogen economy presents several challenges. Currently, the cost of producing green hydrogen remains higher than that of hydrogen derived from natural gas. For instance, gray hydrogen—produced from natural gas—costs approximately $0.98 to $2.93 per kilogram, whereas green hydrogen—produced via electrolysis using renewable energy—costs between $4.50 and $12 per kilogram (BloombergNEF, 2023). Nonetheless, advancements in electrolysis technology, increased production capacity, and government support are contributing to a decline in costs. There is also a substantial need for infrastructure development. Despite Montreal's existing facilities, new investments are essential for hydrogen storage, transportation, and export. This funding is expected to come in the form of a $1.5 billion federal investment in a Low-Carbon and Zero-Emissions Fuels Fund, which aims to enhance the production and utilization of low-carbon fuels, including hydrogen (Natural Resources Canada, 2020). Furthermore, Canada and Europe must address regulatory alignment between both sides to simplify trade and establish clear safety protocols.

Developing a skilled workforce is another priority. Focused training programs and educational initiatives are essential to equip professionals with the expertise needed for hydrogen production, distribution, and export processes. As the global community intensifies actions against climate change, Montreal's renewable energy resources, strategic location, and strong commitment to sustainable development position it to become a leading green hydrogen hub. Research indicates that under current fossil fuel energy prices, renewable hydrogen can already rival hydrogen generated from fossil fuels in several areas, particularly those with strong renewable resources and a reliance on imported fossil fuels to satisfy hydrogen production needs (International Energy Agency, 2022). Over the coming decade, ongoing partnerships among governments, businesses, and research institutions will be critical to realizing the city's potential as a gateway for green hydrogen exports to Europe and a driver of a cleaner global future.

_________________________________________________________________

References:

BloombergNEF. (2023). Green hydrogen to undercut gray sibling by end of decade. Retrieved from https://about.bnef.com/blog/green-hydrogen-to-undercut-gray-sibling-by-end-of-decade/

Natural Resources Canada. (2020, December 16). Minister O’Regan launches Hydrogen Strategy for Canada. Government of Canada. https://www.canada.ca/en/natural-resources-canada/news/2020/12/minister-oregan-launches-hydrogen-strategy-for-canada.html

Natural Resources Canada. (2022, August 23). Canada and Germany sign agreement to enhance German energy security with clean Canadian hydrogen. Government of Canada. https://www.canada.ca/en/natural-resources-canada/news/2022/08/canada-and-germany-sign-agreement-to-enhance-german-energy-security-with-clean-canadian-hydrogen.html

Lewis, J. (2024, August 23). Canada’s hydrogen strategy advances, but challenges remain. Reuters. https://www.google.com/url?q=https://www.reuters.com/business/energy/canadas-hydrogen-strategy-advances-challenges-remain-2024-08-23/&sa=D&source=docs&ust=1743893439835197&usg=AOvVaw2fM275pMcIh4q8h9Nmhb_S

International Energy Agency. (2022). Global hydrogen review 2022: Executive summary. https://www.google.com/url?q=https://www.iea.org/reports/global-hydrogen-review-2022/executive-summary&sa=D&source=docs&ust=1743893458060234&usg=AOvVaw3sAKLbKvd4w8O9NAyGaCiV

International Energy Agency. (2023). Global hydrogen review 2023. 

https://www.iea.org/reports/global-hydrogen-review-2023

Port of Montreal. (2020). Prototype H: A major innovation for energy transition at the Port of Montreal. https://www.google.com/url?q=https://www.port-montreal.com/en/the-port-of-montreal/news/news/prototype-h-en&sa=D&source=docs&ust=1743893489522698&usg=AOvVaw2wvhvGT47GI4N2SXc69OOp

Port of Montreal. (2022). Greenfield Global and the Montreal Port Authority to explore green hydrogen at the Port of Montreal. https://www.port-montreal.com/en/the-port-of-montreal/news/news/press-release/partnership-greenfield