BUndecancellor Olaf Scholz (SPD) has traveled to Canada to continue his efforts to reduce Germany’s dependence on Russian gas. Specifically, it is about the procurement of hydrogen from Canada. Liquefied natural gas (LNG) is also likely to be discussed, but no concrete agreements are to be expected here.
At the beginning of his trip, Scholz called Canada a “very special partner for Germany”. With hardly any other country outside the European Union “we have such close and friendly ties” as with Canada. You not only share common values, but also a similar view of the world. “The country has similarly rich natural resources as Russia – with the difference that it is a reliable democracy.” New fields of cooperation opened up. In particular, they want to work closely together on building a hydrogen economy.
Probably no short-term energy help to be expected
The trip is not expected to close any short-term gaps in German supplies that have arisen as a result of the drastically restricted Russian gas supplies. It was heard in German government circles that they were not coming to Canada expecting to reach agreements for the next one to two years. Rather, it is about a “medium-term perspective”.
At the end of the trip, a hydrogen agreement between Germany and Canada is to be signed on Tuesday. The goal is to get hydrogen from the Canadian Atlantic province of Newfoundland and Labrador by 2025. The foundations for this had already been laid before Russia attacked Ukraine, when a corresponding energy partnership was concluded between the two countries in 2021. As part of a hydrogen strategy, Germany wants to use this energy source more to replace fossil fuels. So-called green hydrogen, i.e. hydrogen produced without the use of fossil fuels, is to be produced with the help of wind turbines in Newfoundland and then shipped to Germany.
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It is more difficult with liquid gas. It is true that Germany is working at great speed to soon have terminals for importing liquefied gas delivered by ship (these are to be designed in such a way that they can also be used for hydrogen). However, for the time being, LNG will come from the United Arab Emirates. Efforts to get something like this out of Qatar soon are faltering.
Canada is also out of the question as a future supplier. The country does not currently have an operational LNG terminal. One is under construction, but on the west coast, destined to supply gas to Asia. Canadian Environment Minister Steven Guilbeault recently said the Canadian government would not encourage the construction of pipelines that would bring the gas to the east coast so that it could flow to Europe. New Canadian LNG terminals could not be built quickly enough to fill Europe’s short-term energy gaps. Given the federal government’s efforts to ensure that Europe’s largest economy becomes fossil-free as soon as possible, it would therefore be risky for Canada to invest heavily in LNG terminals on its east coast.
Scholz wants to deepen good relations with Trudeau
Although energy policy is the focus of the trip, it is also about maintaining good contacts with Canada. The federal government spoke of an “intensive visit to friends”. It is one of the “particular consequences of the turning point” that one assures oneself of one’s close partners and moves closer together.
Canada is the second largest country in the world in terms of area and has almost 40 million inhabitants. Besides oil and gas, it possesses numerous other raw materials in large quantities. For example iron ore, nickel, copper, zinc, silver and gold or also lithium and cobalt. Talks should also be held on this during the trip of the Chancellor and the Minister for Economic Affairs.
Scholz flew to Montreal on Sunday evening, accompanied by Federal Minister of Economics Robert Habeck (Greens). Both travel on to Toronto and from there to the small town of Stephenville in Newfoundland. Scholz and Habeck will be back in Berlin on Wednesday morning. In view of the fact that chancellor trips are generally becoming shorter and shorter, it is a special signal that Scholz is staying in one country for so long.
Canada often takes positions similar to those of Germany in international bodies. Scholz also feels personally connected to Prime Minister Trudeau. “My three-day trip will further deepen the good relations with Canada and Prime Minister Justin Trudeau,” said Scholz.
He and Habeck are accompanied by a large business delegation. In addition to the Chairman of the Federation of German Industries, Siegfried Russwurm, CEOs and managing directors of large companies such as Bayer AG, Siemens Energy AG, Volkswagen AG, Uniper SE and Mercedes-Benz Group AG were present.