Canada and Germany have forged an energy partnership. The two countries announced Tuesday the creation of a “hydrogen alliance” that paves the way for a “transatlantic supply chain.”
“The world cannot continue to depend on authoritarian countries that, like Russia, instrumentalize energy policy,” Canadian Prime Minister Justin Trudeau defended during a press conference in the presence of German Chancellor Olaf Scholz, referring to the energy blackmail of the that Europe accuses Moscow.
“We have to talk about short-term restrictions and liquefied natural gas (LNG), but in the long term, the real potential lies in green hydrogen from the Atlantic provinces,” said Olaf Scholz.
Through this partnership, Ottawa intends to become “a major exporter of hydrogen and associated clean technologies”, which is of particular interest to Berlin, which seeks to “import significant amounts of renewable hydrogen to decarbonize its industry”, but also to emancipate Russian energies.
The first deliveries of hydrogen are planned for 2025, according to a joint declaration of intent signed in Stephenville, Newfoundland and Labrador, by Olaf Scholz, visiting the country for three days, and Justin Trudeau.
Develop the production and export of green hydrogen in Canada
It is in this city on the Canadian Atlantic coast that the US company World Energy GH2 Inc. is seeking to build a hydrogen production plant powered by a wind farm with 164 one-gigawatt turbines. Green or renewable hydrogen is produced by electrolysis, that is, the separation of oxygen and hydrogen from water by means of an electric current, obtained in turn by means of renewable energies.
Within this alliance, Ottawa wants to develop the production and export of green hydrogen in Canada for “domestic use, for export to Germany, the wider European market and Asia” by consolidating cooperation with provinces and territories, according to the document.
Berlin, for its part, wants to support German hydrogen importers by developing an “international trade corridor” with Canada and other countries. To do this, the two nations plan to standardize the rules surrounding “the production, distribution and marketing and use of hydrogen.”
The alliance also aims to strengthen research and development in this still embryonic sector, as well as Canadian and German port infrastructure.
An increase in Canadian LNG imports
But through this partnership, Germany also has Canadian liquefied natural gas (LNG) to help it divert Russian gas imports. “As Germany moves away from Russian energy at lightning speed, Canada is our partner of choice,” said Olaf Scholz. Before continuing: “for now, this means increasing our imports of LNG (liquefied natural gas, editor’s note).
Canada currently has no LNG terminals. However, two terminals are being built on the west coast of the country.
Ottawa is increasing its export capacity with the aim of being able to deliver up to 100,000 barrels per day by the end of the year, as Europe tries to reduce its energy dependence on Russia since the offensive launched in Ukraine.
Source: BFM TV
