Canada steps up energy and minerals commitment to Europe
Clean Energy Wire
Note: This article will be updated throughout the day.
Canada's government is gearing up to expand infrastructure that would allow energy and critical mineral deliveries to Europe, said prime minister Mark Carney during a visit to Germany’s capital Berlin.
“The number one focus of this government is to build that infrastructure, and particularly infrastructure that helps us deepen our partnership with our European partners and particularly Germany,” said Carney during a press conference with German chancellor Friedrich Merz.
Asked about what Canada could realistically offer to Europe, given that ports on the East Coast and pipelines are still lacking, Carney said: “There is a huge range of immediate opportunities with respect to critical metals and minerals, and there are medium term opportunities with respect to all forms of energy, including LNG and hydrogen.”
Canada has considered the option of supplying Europe with liquefied natural gas (LNG) for some time, but plans for export terminals on the East Coast have not materialised yet, largely due to the need for massive port and pipeline infrastructure to transport the fuel to the coast, liquefy it and ship it to Europe. However, Canada just opened an LNG export terminal on its west coast, well-placed to deliver fossil gas to countries in Asia.
Carney said that his government was “in the process of unleashing half a trillion dollars of investment” in energy, port and intelligence infrastructure. The first such investment would be formally announced in the next two weeks, said Carney without providing details. He added that investment examples in the public domain include “reinforcing the port of Montreal, Contrecoeur, a new port, effectively in Churchill, Manitoba, which would open up enormous LNG plus other opportunities, and other east coast ports for those critical minerals.”
Europe struggled to find new suppliers following the halt of gas supplies from Russia in the aftermath of the war against Ukraine. Russia was the main supplier of oil and gas to Europe. The US has filled some of the gap through LNG deliveries from its Gulf Coast. However, Europe is also aiming to become climate neutral by 2050, and will have to largely phase out the fossil fuel by then. Overall demand is projected to decline over the coming years and decades, increasing the risk of stranded assets in case of new gas infrastructure.
Germany and Canada also signed a joint declaration of intent on cooperation on critical raw materials. The two countries aim to push for the diversification of supplies of critical minerals, which are increasingly important in products needed for defence, the energy transition and clean technologies.
