Canada and Germany say a new hydrogen agreement will launch a transatlantic hydrogen supply chain, with first delivery expected within just three years.

Prime Minister Justin Trudeau and German Chancellor Olaf Scholz signed the agreement on Tuesday in the coastal city of Stephenville, Newfoundland, where they attended a trade exhibition

Although Russia's name is not mentioned in the agreement, the agreement concerns energy as much as it concerns sending a message to President Vladimir Putin that his country's era as a global energy power is at risk.

Germany is seeking long-term energy alternatives to fossil fuels to meet its climate commitments and end its energy dependence on Russia.

On the other hand, Natural Resources Minister Jonathan Wilkinson said in an interview on Tuesday that there is no doubt that this agreement is happening now because of Putin and the invasion of Ukraine, saying: "We would have had these hydrogen talks because of the energy transition anyway, but we would not have had them this quickly."

Both governments are clear that this agreement will not immediately solve Germany's desire to get rid of Russian oil and gas – a necessity because the war in Ukraine has threatened European energy security.

Although Canada currently produces hardly any hydrogen that matches the agreement's goals, both countries believe a new hydrogen trade corridor could be ready and operational "before 2030" and that first deliveries are possible in 2025.

The agreement is signed in Stephenville because it is the expected future home of a wind-powered hydrogen facility.