German Chancellor Scholz went overseas to look for an alternative to Russian gas

German Chancellor Olaf Scholz went to Canada in search of alternatives to Russian gas. The head of the German government plans to sign an agreement on hydrogen supply chains amid the looming winter crisis. But analysts are skeptical of Scholz’s efforts to address the energy shortage.

Olaf Scholz is visiting the Maple Leaf Country on an urgent mission, he says, to rid Germany of its dependence on Russian gas and find new sources of energy as pressure builds on his government to find solutions to the looming crisis.

Olaf Scholz and his Economy Minister Robert Habeck, accompanied by a group of officials and business leaders, plan to sign an agreement to create hydrogen supply chains as part of Berlin’s efforts to accelerate the transition to renewable energy, The Guardian writes.

Upon arriving in Montreal for a two-day visit, Scholz said that Canada “has the same rich natural resources as Russia, but the difference is that it is a robust democracy.”

Scholz said that after the start of the conflict in Ukraine with Canada, “new areas of cooperation” opened up.

According to the German chancellor, the priority project on which the two countries want to work closely is the creation of a “hydrogen economy”. An agreement on future cooperation in the production and transport of hydrogen is to be signed between Montreal and Berlin. Scholz is also to discuss deliveries of liquefied natural gas (LNG) from Canada to Germany with his colleague Justin Trudeau.

The visit comes amid a heated debate in Germany over growing fears that Russia could completely cut off already greatly reduced gas supplies.

The German government is facing the need to extend the life of Germany’s three remaining nuclear power plants, which are due to be shut down by the end of the year as part of a nuclear plant phase-out strategy announced in 2011.

In recent days, there have even been calls for the restoration of the Nord Stream 2 gas pipeline from Russia, mothballed by the German government in response to the conflict in Ukraine.

Olaf Scholz said over the weekend that a decision on nuclear power plants is likely to be made in the coming days. But German Economy Minister Robert Habeck, leader of the Greens, stressed that this would only help reduce gas consumption by about 2% and said that “despite the little it will bring us, it is not the right decision.”

The German government immediately rejected the idea of ​​resurrecting the Nord Stream 2 project, repeatedly calling the idea “morally reprehensible.” But the fact that the issue is being raised at all shows how much pressure is mounting on Scholz to develop actionable strategies to deal with an unprecedented situation that threatens to plunge the German economy into recession and force millions of people to face skyrocketing energy bills. and freezing houses.

Deals struck with Canada will do little to help Germany in the near future as energy shortages and record prices are expected this winter and next.

German intelligence agencies have warned that Germany is at risk of unrest from a “radicalized minority” of right-wing extremists and conspiracy theorists who are said to be planning to take advantage of the situation. And leading economists warn that rising electricity bills, in addition to other increases in the cost of living, will push more Germans into poverty and could spark social unrest.

Against this backdrop, the German government is keen to emphasize that once the infrastructure to support hydrogen and LNG is in place, Germany will be in a safer position. The arrival of Scholz and Habek in Montreal is seen as an important immediate signal to German voters that the government is taking action.

On the eve of the visit, Habek said that Germany “is facing a very critical winter.”

Robert Habek told German television that the rapid filling of national gas storage facilities, which are currently just under 80% full, was encouraging, but warned that Russia could cut the flow even further and there was therefore no room for complacency. Currently, only about 20% of the gas that is supposed to pass through the Nord Stream 1 gas pipeline reaches Germany, The Guardian notes.