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Scholz heads to Canada for energy talks

August 21, 2022

During the visit, the chancellor is set to sign a long-term deal to receive green hydrogen from Canada. German carmakers are keen to source minerals for electric vehicle batteries from the North American country.

https://p.dw.com/p/4FqQ6
German Chancellor Olaf Scholz boards a flight to Canada on August 21, 2022
Scholz departed Sunday, along with Economy Minister Robert Habeck, on a three day visit to CanadaImage: Kay Nietfeld/dpa/picture alliance

German Chancellor Olaf Scholz on Sunday left for a three-day visit to Canada focused on boosting energy security in Europe's largest economy.

Faced with the possibility of reduced or zero gas imports from Russia — in retaliation for Western sanctions over the war in Ukraine —  the chancellor is stepping up efforts to secure alternatives.

Scholz and his deputy and energy minister, Robert Habeck of the Greens, landed in Montreal late on Sunday local time and were greeted by Prime Minister Justin Trudeau and his deputy, Chrystia Freeland.

Scholz praised Canada on arrival, calling it one of Germany's closest friends outside the EU and saying that it was a country rich in natural resources like Russia, but by contrast was also a reliable democracy.

LNG and hydrogen deals planned

Up for discussion will be the supply of liquefied natural gas (LNG), although it was unclear whether this would meet Germany's short-term needs.

Canada currently has no LNG terminals for export and new facilities would take years to build.

Germany's gas requirements are limited due to plans to phase out fossil fuels by 2035.

A longer-term deal on closer cooperation on renewable energies like green hydrogen is expected to be signed.

Canada is planning to build a hydrogen plant in Newfoundland that will use wind energy to produce the fuel, the Globe & Mail reported.

Germany is also keen to source minerals available in Canada — nickel, cobalt, lithium and graphite — which are important for the production of batteries for electric vehicles.

Scholz, who is joined on the trip by Economy Minister and Vice Chancellor Robert Habeck, will hold talks with Canadian Prime Minister Justin Trudeau.

Support for Ukraine likely to dominate talks

The leaders are due to discuss the need for political, economic and military support for Ukraine's battles against Russia, and on dealings with China.

The two German politicians will first meet Trudeau in his Montreal constituency on Monday.  

The trio will then attend a German-Canadian economic conference in Toronto.

A delegation of more than a dozen business leaders is accompanying Scholz and Habeck, including the CEOs of Volkswagen and Siemens.

Before they leave, the German leaders will visit the remote town of Stephenville in Newfoundland, to spotlight the development of hydrogen technologies and hydrogen supply chains.

As Germany scrambles to wean itself off Russian gas, Habeck has already visited countries like Qatar, the United Arab Emirates and Norway on missions to diversify energy imports.

Government urges Germans to save energy

Scholz interrupted by topless protest

Earlier Sunday, Scholz found himself suddenly flanked by topless women during a press event, as part of a protest calling for an embargo on Germany's import of Russian gas.

A dpa photographer at the scene reported that security guards immediately intervened and led the two women away.

Habeck, meanwhile, said Sunday that Germans shouldn't panic about a shortage of gas this winter.

He said the government was helping to secure additional gas supplies, including LNG from the United States, but stressed that the country would still need to cut gas usage by 15-20%.

With material from DPA news agency

Edited by: Srinivas Mazumdaru

Nik Martin is one of DW's team of business reporters based in Bonn.