At the Global Energy Show in Calgary, the sentiments heard time and time again, by the world’s top energy authorities, is that the Ukraine war is deeply impacting not only our global energy supply but our ability to focus on climate change.
Increased levels of geopolitical conflict have unfortunately made the energy transition more fragmented, driving energy costs higher in many regions of the world. Additionally, positive developments in renewable energy, in many cases, are offset by the negative consequences of energy shortages, cascading into global economies.
With Russian gas supplies to Europe, now close to zero, there is an extreme gas shortage in the region. Germany, Austria, and Italy, which were historically dependent on Russian gas, are dramatically impacted and are forced to find other avenues to acquire reliable, geopolitically stable, clean, energy supplies.
Russia’s attack on Ukraine has raised the risk of violent conflict not only in Ukraine but around the world. Compounding sources of energy insecurity, which are already under pressure because of climate change, exacerbate food insecurity, large-scale human displacement, and the sort of inflationary price spikes that can create social unrest.
Countries like Canada will be an imperative solution to political volatility and world energy shortages. Canada is a superpower in the natural resources arena. Canada is well positioned to ship energy resources from the western seaboard of Vancouver to Asia, and from the Eastern seaboard of Newfoundland and Nova Scotia to Europe.
Unknown to most of the general public, but commonly known in the energy industry, Canada has one of the world’s cleanest energy grids. 83 percent of Canada’s energy comes from clean sources.
61% – Hydro
15% – Nuclear
5% – Wind
2% – Biomass & Solar
Uncommonly known by the general public is that Hydrogen has long been produced in Canada for decades. Most hydrogen in Canada is produced by the chemical industry from fossil fuels (53%) and the oil and gas sector (47%). Geographically, most hydrogen is produced in Western Canada (76%), followed by Central Canada (17%) and Atlantic Canada (7%).
Canada already has several green hydrogen projects installed or under construction in Quebec and British Columbia. The country is ready to transition to Hydrogen from wind as the next major play.
Because of Europe’s dire need for renewable energy, Newfoundland is well-positioned to be a primary supplier of wind hydrogen energy. Newfoundland is one of the top 5 windiest places on earth, coupled with its proximity to Europe, which will pave the way for renewable Wind/Hydrogen/Ammonia developments that will develop at an exponential rate.
With exciting wind energy mega-projects in the pipeline for development the future of the province is very exciting. For example, Newfoundland just signed off on Canada’s highest renewable investment to date. Pattern Energy has invested $ 4 billion US at the Port of Argentia in Newfoundland, to develop a green hydrogen project. The project will use renewable electricity to produce green hydrogen and convert it into carbon-free ammonia, which can be safely stored and shipped to end-user customers around the world, particularly in Europe.
High fossil fuel prices, energy security concerns, and the urgency of climate change underscore the pressing need to move faster to a clean energy world. Canada is ready for the opportunities to transition responsibly into green hydrogen and avail of the economic benefits that come with that adaptation.
As the world starts to wake up to the reality that we must focus on decarbonization and emissions reduction, rather than demonizing energy sources, the countries with the greatest natural resources will save the day. Canada will save the day!
Canada’s natural resources are unprecedented. Canada ranks number four in the world for most valuable natural resources. Russia is number one in the world for natural resources. Given Russia’s geopolitical instability, the short-term picture for global energy supply is virtually reduced to zero. Next to Russia, natural resource value ranks the USA as the number two and Saudi Arabia as the number three. Then comes Canada.
Evaluating who to do business with globally depends on an array of factors. Energy buyers and consumers around the globe will evaluate carefully where they can gain energy sources based on factors such as:
1. Highest environmental standards
2. Geopolitical stability
3. Energy price
4. Proximity to market
5. Economic factors
6. Sustainable clean energy factors
7. Cultural factors
8. Indigenous people and partnerships
9. Inclusion & diversity
10. Championing human rights
11. Responsible energy development
12. Renewable energy transition
Canada ticks all the boxes. It is one of the most politically stable countries in the world. It has the 3rd largest crude oil reserves in the world. Crude oil is the world’s main source of fuel and the largest overall source of primary energy. Canada’s hydrogen potential could easily become a world leader and contributor as Canada can produce hydrogen from a diversified mix of sources, including renewable energy. Newfoundland looks like the next big hot spot for wind/hydrogen energy. Overall Canada is a world leader and superpower when it comes to natural resources.
Canada is the key to the energy crisis and the fragmented climate change efforts as a result of the Ukraine war. Canada has nothing but exciting times ahead.
Get revitalized, globalize, and energized. Invest in Canada. It will pay off!
Sources & Images
Natural Resources Canada
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