Prime Minister Justin Trudeau and German Chancellor Olaf Scholz will sign an agreement to jointly explore the production of hydrogen fuel in Canada for export to Germany, the German government announced Friday. Mr. Scholz will visit Canada from August 21-23 and the two heads of government will sign the hydrogen agreement during a stop in Stephenville, NL The Chancellor he will be accompanied on his trip by Germany’s Federal Minister of Finance and Climate Protection, Robert Habeck, and a business delegation. The deal is part of the German government’s drive to become less dependent on Russian fuel supplies by deepening energy partnerships with Canada and other countries. In recent months, as tensions over Russia’s invasion of Ukraine have risen, Moscow has cut gas flows to Europe, forcing Germany to prepare for gas rationing. Germany debates lifting fracking ban as it faces energy supply crisis Germany disputes nuclear shutdown amid gas supply concerns Germany is pinning its hopes on hydrogen, both for its long-term energy security and as part of its transition to a greener economy. Unlike fossil fuels, hydrogen does not produce harmful emissions when used as a fuel. This makes it a potential boon for the energy needs of Germany’s heavy manufacturing industries. Hydrogen could also be used in commercial transport or to heat buildings. However, the European country won’t be able to produce nearly enough on its own, and is looking at what it sees as a potentially plentiful Canadian supply. Producers in Alberta make most of Canada’s hydrogen using natural gas – a process that creates greenhouse gas emissions. Some companies see Atlantic Canada as a place where wind energy resources could be used to produce hydrogen with renewable energy sources – a draw for Germany, which has ambitious climate goals that include reducing emissions to net zero by in 2050. Newfoundland and Labrador lifted a moratorium on wind farm construction earlier this year and on July 26 the provincial government issued a call for proposals to install wind turbines on Crown land. Newfoundland and Labrador Industry, Energy and Technology Minister Andrew Parsons said the province already has about 15 companies expressing interest in wind energy projects in the province. Some of these will include hydrogen production, he said, with Germany as a potential customer. The upcoming visit by Mr. Scholz and Mr. Trudeau is another indication that a hydrogen sector can be established in the province, he added. “When you have high-profile figures coming to our turf, coming to meet with people, I think it gives a greater sense of: This is real, this is happening, this is moving forward,” he said. The visit comes about five months after Mr. Scholz and Mr. Trudeau met in Berlin to discuss a range of issues, including clean energy. The idea of producing hydrogen from renewable sources was also on the agenda in May, when Mr. Habeck met with Canada’s Minister of Innovation, Science and Industry, François-Philippe Champagne. At that time, Mr. Habeck explained that Canada offered many opportunities, because liquefied natural gas and hydrogen could one day be exported from the same terminals. During his trip to Canada this month, Mr. Scholz will also make stops Montreal and Toronto. He will visit the Montreal Institute for Learning Algorithms, which carries out research and development in the field of artificial intelligence and quantum computing. Mr. Scholz will also meet with representatives of Canadian pension funds and former Bank of Canada governor Mark Carney, who is now the United Nations Special Envoy for Climate Action and Finance. The group will discuss promoting investments in the shift towards renewable energy sources. Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox morning or night. Sign up today.
