Canada, Germany sign pact for clean energy

TRENTON, Canada

Canada and Germany signed a deal Tuesday for clean energy that will help the European country in its biggest transformation "since the beginning of the industrial revolution."

Chancellor Olaf Scholz made the remark as he put his signature to the green energy deal, a declaration of intent, along with Canadian Prime Minister Justin Trudeau. It will see Canada export hydrogen and ammonia from a yet-to-be-built zero emission wind-powered plant in the east coast province of Newfoundland and Labrador.

European countries need to wean themselves off Russian gas and oil. Russia’s war in Ukraine has exposed the weakness of that reliance as Russian President Vladimir Putin cut gas exports to Germany, causing major disruptions in the country.

Hydrogen is portrayed as a critical staple in achieving that goal.

Trudeau, speaking to a Canada-German business forum in Toronto, said Canada wants to help in the effort to stop relying on Russia and fossil fuels in general due to climate change.

"It has never been clearer why we need to accelerate the green transition," he said. "And you should have no doubts that Canada has what it takes to be a supplier of clean energy in a net-zero world."

Scholz said he views Canada as a major stepping stone, as Germany wants to become climate neutral by 2045.

"This means increasing our energy imports," he said. "We hope that Canadian energy will play a major role in this.

"But the task at hand is much bigger than simply diversifying our energy supply. For us, what lies ahead is nothing less than the biggest transformation of our economy, infrastructure and mobility since the beginning of the industrial revolution."

Earlier Tuesday, the Trudeau government signed a deal with both Volkswagen and Mercedes-Benz to give the German carmakers access to Canadian raw materials for the manufacture of batteries for electric vehicles.

In a release, the government said the deals will "help secure Canada's position as a leading center of excellence for the manufacturing of electric vehicles and batteries."

Under the deal, the carmakers will be provided with cobalt, graphite, nickel and lithium.