Green hydrogen supplies are focus of German state visit to Canada

Chancellor Olaf Scholz and economy minister Robert Habeck want to deepen Germany’s energy ties with Canada during a three-day state visit, with a particular focus on future supplies of hydrogen made with renewables. It is obvious that Canada will not be able to supply liquified natural gas (LNG) in the short term to alleviate Germany’s acute supply problems resulting from the war in Ukraine, government officials said, according to a report in the Rheinische Post. But there will be talks on whether this could be possible in the medium term, they added. Germany’s foreign trade association BGA told the paper Canada could “contribute to keeping the European economy afloat and households warm” by accelerating plans for LNG export terminals, which are controversial in Canada and opposed by many environmentalists.

Scholz will sign a hydrogen deal with Canadian prime minister Justin Trudeau in Stephenville on Canada's Atlantic Coast, where there are plans to use wind energy to produce the fuel for export, reports Reuters. Green hydrogen is a key component of Germany’s decarbonisation plans, but the country won’t be able to generate enough of the climate-neutral fuel to cover its huge projected needs.

“Canada is not only a good partner for Germany, but also a close friend. We want to deepen this relationship and cooperate more closely on energy and climate protection in particular”, Scholz said on Twitter shortly after the German delegation’s arrival. Habeck said Canada would play an important role in the move to a low-carbon world. “Canada is a key country for the energy transition and the transformation of our and the global economy,” he said, adding Germany aimed for closer ties, both economically and technologically.

The German government has eagerly tried to expand its energy import base following Russia's invasion of Ukraine in a bid to become independent of Russia as an energy supplier. The government has looked into entering a range of gas and hydrogen supply contracts with countries like Qatar, Israel, Senegal and Australia, while traditional gas suppliers like the Netherlands and Norway have maximised their supply to Europe's largest economy in the wake of Russia's attack.