You're correct. There is a lot of ongoing activity in Atlantic Canada's hydrogen sector. Much of that activity is export-focused. In fact, the vast majority of investment in hydrogen infrastructure on the east coast is focused on exporting green hydrogen and green ammonia to Europe, particularly to Germany. That is largely driven, as I mentioned in my opening remarks, by the H2Global double-blind, contracts-for-difference auctioning program.
For the committee's reference, that program brings together buyers in Germany with producers of hydrogen and green ammonia in Canada. Both sides, in a blind format, set their price to sell and their price to buy. Then a contract for difference enters into play to offset cost deltas there. That is the main driver to really kick-start the export dynamic between Canada and Europe, when it comes to hydrogen and its derivatives. We're seeing continued investments in this space.
You mentioned organizations like EverWind being the flag-bearers for green hydrogen production. That is 100% accurate. I think one of the challenges the sector is facing is twofold.
When we've discussed hydrogen in public policy discourse, it's always been seen, in Canada and internationally, on a 10-year time horizon for projects to really take shape and for export markets to develop. One of the challenges is that we're seeing export markets develop much more rapidly than we thought. Germany is really pushing forward with executing that H2Global auction on an accelerated timeline. I wouldn't be surprised if, by the close of 2026, the first auction for Canadian-produced hydrogen to Germany takes place. That is moving forward quite quickly.
As I also mentioned, other markets, like Asia-Pacific, Japan particularly, are putting ships in the water to fill up with liquid hydrogen. Even on the west coast of the country, there are material opportunities to expand our energy exports through production and export of hydrogen.
Obviously, in both markets I mentioned—Asia-Pacific and Europe—they are not only looking for affordable and reliable producers of hydrogen, but also looking for low-carbon producers of hydrogen. That's one of the other challenges, or opportunities perhaps, Canada is facing. Right now, the majority of our 3.5 million to 4.5 million tonnes produced annually is grey hydrogen. It's more carbon-intensive and unabated. What we're seeing on the east coast is really the turning of the page of that chapter into Canada being a low-carbon hydrogen producer with exports in mind.