Germany explores Canadian energy

Germany’s chancellor Olaf Scholz has touched down in Canada and is ready to make an energy deal that absolutely does not include Russia. 

Why it matters: No country has been hit harder by the Russian-induced energy shortage than Germany. Canada’s contributions may not be immediate, but it can certainly play a role in helping Germany achieve energy security, along with its net-zero emissions goals. 

  • Germany has exceeded its gas storage targets (as part of its emergency plan to avoid a gas crisis this winter), but there are renewed fears over Russia cutting off gas entirely as the pipeline connecting the two countries undergoes more maintenance

What happens next: Scholz and Justin Trudeau are set to sign a deal to supply clean hydrogen to Germany, but a separate agreement on direct exports of liquified natural gas (LNG) is unlikely, per The Guardiandue to logistical constraints and costs.

In other news: Scholz separately announced that Volkswagen and Mercedes, two of Germany’s major auto giants, are “signing agreements with the Canadian government to co-operate on supply chains for electric vehicles,” per The Globe and Mail.