German PM Scholz to arrive in Canada
German Chancellor Olaf Scholz will arrive in Canada today to discuss closer bilateral relations with Prime Minister Justin Trudeau
Scholz will be accompanied by Vice Chancellor Robert Habeck—Germany’s current economics minister, tasked with overseeing the country’s energy needs—and various German CEOs. The visit will center largely on strengthening economic ties, with a focus on clean hydrogen and minerals.
The ongoing Russian invasion of Ukraine has rattled international energy markets, triggering higher prices and leading European leaders to try to ween off their reliance on Russian oil. Germany has struggled especially, looking towards liquified natural gas (LNG) and other alternatives. While Canada can offer hydrogen, its LNG infrastructure is inadequate to meet German needs.
Expect Canada to sign an agreement supplying hydrogen to Germany, as predicted. A deal on LNG is unlikely at this time, though discussions will likely begin laying the groundwork for a future agreement as Canada’s industry develops. Still, Canadian supplies may not prevent Germany’s impending winter energy crunch, let alone resolve the entire crisis. Instead, Germany will likely continue expanding its energy supplies piecemeal through agreements with North American and Middle Eastern suppliers, with consumers suffering high prices and the specter of rationing in the short term.
