As it continues to shift away from Russian oil and gas in favor of other energy sources like green hydrogen, Germany needs a supply of liquefied natural gas (LGN) to meet its energy demands, according to Chancellor Olaf Scholz on Monday.

“We will still require LNG throughout the changeover phase, that much is obvious. It is essential because we want to reduce our reliance on Russian gas supplies and because of the circumstances in which we currently find ourselves “Scholz made the statement in Montreal during a news conference with Justin Trudeau, the prime minister of Canada.

In order to discuss the construction of Canadian hydrogen and LNG liquefaction plants, Scholz is in Canada for a three-day visit.

Germany has set up shop as a prospective investor

Both Germany and Canada have consistently said that they are actively exploring climate-neutral energy alternatives.

Scholz and Trudeau are scheduled to go to the Canadian state of Newfoundland and Labrador, where the two nations are anticipated to sign a hydrogen agreement.

Compared to grey hydrogen, which is created by burning fossil fuels like natural gas, green hydrogen is produced using renewable energy or low-carbon electricity and has reduced carbon emissions.