Green Hydrogen Survives Trump’s Trade War, So Far

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Last Updated on: 13th March 2025, 08:56 pm

US-Canadian trade relations are in tatters on account of the dictator-adjacent Commander-in-Chief who occupies the White House. Nevertheless, not all cross-border economic activity has screeched to a halt. A case in point is the ambitious North American green hydrogen plan being hatched by the Montreal-based Canadian startup Charbone Hydrogen in collaboration with the leading Swiss legacy engineering firm ABB.

Green Hydrogen Plan Nixed By Trump …

The green hydrogen market has proved to be a tough nut to crack globally. Though, some investors are still determined to break through. The situation was not made any easier in the US on Election Day 2024, when the American electorate decided “sure, why not?” and gifted President Trump with another opportunity to wreck the economy even faster than he did the first time around.

Among the many federal programs on the Trump chopping block is the ambitious $7 billion Regional Clean Hydrogen Hubs program. The funds were part of the 2021 Bipartisan Infrastructure Law, which stipulated a carve-out for natural gas within the goal of diversifying the nation’s hydrogen supply chain. When the dust settled and the Energy Department selected seven Hubs to receive funding, much of the focus turned out to be on green hydrogen produced by water electrolysis or extracted from biomass and other renewable resources.

Funding for the Clean Hydrogen Hubs program is now up in the air. Nevertheless, other private sector stakeholders still see a green light at the end of the US hydrogen tunnel, and that’s where the collaboration between ABB and Charbone Hydrogen comes in.

… But ABB And Charbone Have A Plan.

ABB outlined the new arrangement in a press statement on Thursday, emphasizing that it will enable Charbone Hydrogen to pursue green hydrogen production opportunities in the US as well as Canada. ABB will take up responsibility for improving energy efficiency and reliability at the facilities among a laundry list of other engineering tasks, with the help of remote monitoring technology.

The Memorandum of Understanding between the two companies calls for up to 15 modular, plug-and-play green hydrogen facilities to be located in various parts of the US and Canada over the next five years, partly aimed at the existing market for hydrogen. In the US, that primarily means refineries and fertilizer production. As of 2018, about 70% of the hydrogen produced in the US was used by petroleum refiners to reduce the sulfur content of diesel fuel among other applications. Another 20% was used for fertilizer production.

That doesn’t leave much room for anything else, but ABB and Charbone aim to leverage green hydrogen to build new markets in steelmaking and other heavy industries where stakeholders are seeking to reduce their carbon emissions. Currently, about 95% of hydrogen produced in the US is sourced from natural gas. Manufacturers pursuing global markets are on the prowl for a more sustainable supply chain, regardless of the backwards direction taken by the White House.

More Green Energy For Green Hydrogen

Among the obstacles to the 15-facility plan is the source of the electricity to run electrolyzer systems. After all, green hydrogen is not optimally green if the electrolyzer system draws from a grid mix that includes fossil fuels.

ABB indicates that the location of facilities will be determined by the availability of renewable resources, following the model demonstrated by Charbone’s Sorel-Tracy green hydrogen plant near Montreal. “The facility is expected to be connected to the Hydro-Québec grid by the end of quarter two in 2025, using hydro electricity to power green hydrogen electrolyzers,” ABB explains.

“The plant will create a blueprint for the design and engineering of modular and scalable equipment for other sites being developed by Charbone,” they add.

More Cross-Border Green Hydrogen Collaborations Surface

As noted by ABB, the Quebec government is counting on green hydrogen to achieve its decarbonization goals. That has been tossed out the window by US President Trump. Still, ABB notes that the greater Detroit area has already been tapped as the location of its next green hydrogen project with Charbone. Last year, Charbone indicated that Oakland County was the preferred location, in consideration of its access to clean power among other factors.

That’s … interesting. The Norwegian firm Nel ASA has a substantial green hydrogen footprint in both the US in Canada, and last year Nel also lined itself up to establish a new facility in the Detroit area. Though, the company is reportedly waiting for clarity on US tax credit policy before making a final investment commitment.

To make things even more interesting, on March 11, Nel and Samsung E&A (formerly Samsung Engineering) announced a collaborative agreement under which Samsung will offer its customers a complete green hydrogen production package featuring Nel electrolyzers, suggesting follow-on activity in the US, Canada, or both.

Collateral Damage In US–Canada Trade War

Green hydrogen is not the only indication that US–Canada collaboration on clean energy can survive Trump’s misbegotten trade war, at least for now. The Canadian firms Electrovaya (energy storage), Canadian Solar (solar modules and energy storage), and Canadian Premium Sand (solar glass) are among those announcing new activity in the US market in recent days and weeks.

One company that probably can’t count on any breaks from Canada is Tesla. As in the US and elsewhere around the world, Tesla sales have taken a nosedive in Canada concurrent with the megalomaniac behavior of CEO Elon Musk.

Tesla’s reputation in Canada took a further hit last week, when reports surfaced that the company may be gaming Canada’s EV rebate program to the tune of $43 million, shutting other carmakers out.

The Canadian utility BC Hydro, for one, has seen enough. It has given Tesla products the heave-ho from its EV charging rebate program. Anyone who buys a Tesla home EV charger, energy storage system, or inverter from March 12 onward will not be eligible for its rebates, which range up to $350.

BC Hydro posted an advisory to that effect to lead off its online rebate information, headlined “Tesla products are not eligible.”

“Government of B.C. and BC Hydro are taking action to preference Canadian goods in our rebate programs going forward and to exclude, where practicable, U.S. produced goods. As of March 12, 2025, Tesla products (electric vehicle chargers, energy storage batteries and inverters) are not eligible for CleanBC and BC Hydro rebates,” BC Hydro emphasized.

Ouch! Earlier this week I asked our readers if they think that Tesla’s energy storage business will be hit by the same factors impacting its EV sales. Now Trump’s trade war with Canada has added fuel to the fire.

What do you think, is BC Hydro just the tip of a growing iceberg?

Image (cropped): Trump’s misbegotten trade war against Canada notwithstanding, leading hydrogen stakeholders continue to collaborate across the border on green hydrogen projects (courtesy of US Department of Energy).