Mr. Chair and members of the committee, thank you for the opportunity to appear today.
As noted, my name is David Billedeau. I'm the president and CEO of the Canadian Hydrogen Association, which is the national industry association representing the full hydrogen value chain here in Canada. Our members span producers, technology developers, infrastructure providers, post-secondary institutions and end-users. Our focus is straightforward: building a competitive, investable hydrogen sector in Canada.
To start, let me calibrate expectations. Hydrogen is not yet a mature commodity market globally, but it is an emerging one. Demand is forming rapidly, and timing is critical. Countries that align production, infrastructure and policy with real buyers now will capture these markets, and importantly, these opportunities will not wait.
I think two markets matter most today: Europe, and Germany in particular; and the Asia-Pacific region, namely Japan and Korea.
In Europe, demand is being actively built for hydrogen. Germany's H2Global mechanism is securing a long-term, low-carbon fuel supply through a contracts-for-difference system backed by over 200 million euros in state aid for hydrogen imports from Canada.
Meanwhile, in the Asia-Pacific region, Japan is preparing to operate a 40,000-cubic-metre liquefied hydrogen tanker by 2030, reflecting import demand at scale. Korea, meanwhile, has expressed interest in building hydrogen corridors here in Canada, linking hydrogen production with refuelling, mobility infrastructure and transport via ammonia.
For Canada, this creates a genuine export opportunity, but only if we produce at scale competitively. To be clear, we don't face a shortage of hydrogen project proposals. We're facing a shortage of projects reaching final investment decision. That comes down to economics and policy design.
The clean hydrogen investment tax credit, or CHITC, is central to addressing this. The issue is not whether the credit exists, but whether it's truly workable for real projects. We believe that targeted refinements to the CHITC would unlock private capital and accelerate hydrogen development. I'll be happy to provide the committee with a copy of our full technical CHITC recommendations after the discussion, but done right, optimizing the CHITC could help unlock over $35 billion in private capital by the early 2030s, all within the existing CHITC funding envelope.
I also want to be clear that Canada's hydrogen sector is already operating in global markets. Canadian hydrogen and fuel cell technologies are currently being exported to nearly 50 countries worldwide. For both Canadian hydrogen and technology exports, I believe we have a very strong foundation, but success in scaling now depends on coordination and focus. To fully seize Canada's export opportunity here, I would highlight three recommendations for consideration.
First, as I mentioned, optimize the CHITC to ensure production can scale across regions and project types.
Second, continue to invest in targeted export promotion programs, like CanExport, PacifiCan and Export Development Canada, which are vital for enabling Canadian hydrogen innovators to access foreign markets.
Finally, enhance federal and provincial coordination on export and distribution infrastructure for hydrogen and its derivatives. The opportunity to lead in low-carbon fuel exports is real but time-sensitive. Buyers and investors are making decisions now.
In closing, I think Canada has the fundamentals, the technology and the talent to compete in the emerging global hydrogen market, but what we need is clarity, coordination and commitment to turn that potential into projects and exports.
Thank you. I look forward to the discussion.