Having flown to Canada to discuss a potential deal for green energy, German Chancellor Olaf Scholz has now signed a deal regarding the importation of green hydrogen from Canada.

Chancellor Scholz ties Germany to hydrogen deal

On Sunday, German Chancellor Olaf Scholz and Vice-Chancellor Robert Habeck were joined by a delegation of German business leaders on a trip to Canada to discuss green energy deals. On Tuesday, the German chancellor signed a deal with Canadian Prime Minister Justin Trudeau which allows Germany to import green hydrogen from Canada.

The deal is a significant development in Germany’s quest to reduce its reliance on Russian gas. In a joint declaration, the two leaders stated that this deal will help drive the hydrogen industry and create a transatlantic supply chain, allowing Canada to export hydrogen to a broader European market – something that would help ensure energy security in Europe.

Canada has plans to become a major producer and exporter in the fledgling hydrogen industry, as well as a main player in other related clean energy technologies. This includes plans to eventually export to Asia. The first deliveries of Canadian hydrogen to Germany are expected as early as 2025.

Discussions over energy deals continue

Despite having signed a deal regarding the importation of hydrogen, Chancellor Scholz still wishes to discuss the potential purchase of liquefied natural gas (LNG) from Canada. Hydrogen and LNG are not short-term solutions, as Canada is not yet able to export LNG internationally and the hydrogen industry is still growing.

German energy companies Eon and Uniper have announced the signing of a memorandum of understanding with Canadian hydrogen producer EverWind during the discussions. The energy companies want to start importing hydrogen on a large scale to German cities from 2025.

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