By Swann Collins, investor, writer, and consultant in international affairs – Eurasia Business News, August 24, 2022

Canadian Prime Minister Justin Trudeau and German Chancellor Olaf Scholz have signed an agreement to start supplying Canadian hydrogen fuel from 2025. Mr. Scholz said that Ottawa is the preferred partner of Berlin, as Germany refuses Russian energy.

The parties signed a non-binding agreement during the visit of the German Chancellor in the western Newfoundland town of Stephenville. The document is a “declaration of intent”.

“The future belongs to hydrogen: we will create a common market with Canada by 2025. I am pleased with the agreement concluded today,” Mr. Scholz wrote on Twitter.

As noted by the Associated Press, Canada plans to build a plant with zero emissions, it will use wind energy to produce hydrogen and ammonia for export.

The first deliveries are expected in just three years.

The German Chancellor is in Canada on a three-day visit. The main goal is to agree on long-term energy cooperation, primarily on the supply of liquefied natural gas to replace Russian pipeline gas.

The agreement is part of the German government’s effort 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 military operation in Ukraine have mounted, flows of Russian natural gas to Europe have been reduced due to sanctions, leading Germany to brace for gas rationing.

Canada currently produces about three million tonnes of hydrogen from natural gas a year, according to the federal government’s 2020 Hydrogen Strategy, which puts this country among the top 10 producers of the fuel in the world today.

The trip to Canada is the first for Scholz as Chancellor.

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© Copyright 2022 – Swann Collins, investor, writer and consultant in international affairs.