Page 4 - FSUOGM Week 05 2021

FSUOGM COMMENTARY FSUOGM

Novatek, Uniper form

hydrogen pact

Novatek is seeking to appease climate-conscious investors but has also

recognised that hydrogen investments may pay off if the fuel takes off

RUSSIA RUSSIAN LNG exporter Novatek and German become carbon neutral by 2035.
energy group Uniper have banded together to “Germany, like many other heavily industri-
WHAT: develop a hydrogen supply chain, the companies alised countries, will be dependent on hydrogen
Novatek and Uniper have announced on January 29. imports, as the demand for hydrogen exceeds
reached a preliminary Under a memorandum of understanding production capacities,” he explained. “Therefore
deal to develop an (MoU), the pair will look at developing an inte- we are seeking worldwide co-operations and
integrated hydrogen grated chain for producing, transporting and partnerships.”
supply chain. supplying hydrogen, with Uniper’s power sta- While Germany is heavily prioritising green
tions in Russia and Western Europe identified as hydrogen development at home, it is still open to
WHY: potential recipients for the fuel. using blue hydrogen to decarbonise energy-in-
The partnership will help Novatek, Russia’s second-biggest gas pro- tensive industries. German steelworks Thyssen-
both companies pursue ducer, will be able to create so-called blue hydro- krupp is studying plans with Equinor to supply
their climate goals. gen using its existing resources. This is produced the fuel to its production facility in Duisburg.
from natural gas using methane reforming, with “As an already trusted supplier of natural gas,
WHAT NEXT: CO2 from the process captured and stored. Novatek is well prepared to develop export capa-
Russia will need to However, the pair said they would also look bilities for hydrogen,” Schierenbeck said.
work quickly to create at green hydrogen, derived from water using Novatek is seeking to convince increasingly
commercial and renewable energy-powered electrolysis. climate-conscious investors and gas buyers of its
regulatory frameworks “Hydrogen energy contributes to the preven- green credentials, recently announcing several
to support hydrogen tion of climate change and is a promising area new projects and targets for reducing its emis-
production, or risk losing of Novatek’s long-term development strategy,” sions. It entered a deal in December with Ger-
out. CEO Leonid Mikhelson said in a statement. “The many’s Siemens to develop hydrogen and other
development of commercially viable low-carbon carbon-cutting technologies. According to Rus-
hydrogen production is in its early stages, and sian press reports, the pair are devising a plan to
our joint co-operation in this area with Uniper, convert one of Yamal LNG’s gas-fired turbines to
one of the leading international energy compa- run mostly on hydrogen.
nies, will lay a solid foundation for further build-
ing long-term relationships.” Europe needs hydrogen imports
Uniper CEO Andreas Schierenbeck added While hydrogen energy is still in its infancy,
that hydrogen would play a key role in its plan to the EU and many of its members published

P4 www. NEWSBASE .com Week 05 03•February•2021