Page 8 - GLNG Week 05 2021

GLNG COMMENTARY GLNG

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

ENERGY RUSSIAN LNG exporter Novatek and German Novatek is seeking to convince increasingly
TRANSITION energy group Uniper have banded together to climate-conscious investors and gas buyers of
develop a hydrogen supply chain, the companies its green credentials, recently announcing sev-
WHAT: announced on January 29. eral new projects and targets for reducing its
Novatek and Uniper have Under a memorandum of understanding emissions. It entered a deal in December with
reached a preliminary (MoU), the pair will look at developing an inte- Germany’s Siemens to develop hydrogen and
deal to develop an grated chain for producing, transporting and other carbon-cutting technologies. According
integrated hydrogen supplying hydrogen, with Uniper’s power sta- to Russian press reports, the pair are devising
supply chain. tions in Russia and Western Europe identified a plan to convert one of Yamal LNG’s gas-fired
as potential recipients for the fuel. turbines to run mostly on hydrogen.
WHY: Novatek, Russia’s second-biggest gas pro-
The partnership will help ducer, will be able to create so-called blue hydro- Europe needs hydrogen imports
both companies pursue gen using its existing resources. This is produced While hydrogen energy is still in its infancy, the
their climate goals. from natural gas using methane reforming, with EU and many of its members published strate-
CO2 from the process captured and stored. gies for developing the fuel, with the use of both
WHAT NEXT: However, the pair said they would also look supply- and demand-side subsidies. Novatek,
Russia will need to at green hydrogen, derived from water using already a key LNG supplier to Europe, is eager
work quickly to create renewable energy-powered electrolysis. to carve out a position in this emerging sector.
commercial and “Hydrogen energy contributes to the preven- There is widespread acceptance that Europe
regulatory frameworks tion of climate change and is a promising area cannot produce nearly enough green hydrogen
to support hydrogen of Novatek’s long-term development strategy,” to cover projected demand in the coming dec-
production, or risk losing CEO Leonid Mikhelson said in a statement. ades, and will therefore need imports. Uniper
out. “The development of commercially viable said in November it was considering convert-
low-carbon hydrogen production is in its early ing its planned LNG regasification terminal
stages, and our joint co-operation in this area to receive hydrogen instead. In neighbouring
with Uniper, one of the leading international Belgium, a group of companies led by gas grid Novatek, Russia’s
energy companies, will lay a solid foundation operator Fluxys and French energy firm Engie
for further building long-term relationships.” this month completed a study on a potential second-biggest
Uniper CEO Andreas Schierenbeck added hydrogen import terminal. gas producer,
that hydrogen would play a key role in its plan The study, also supported by Belgian shipping
to become carbon neutral by 2035. form Exmar, engineering firm Deme, hydrogen will be able to
“Germany, like many other heavily industri- specialist WaterstofNet and the port authorities
alised countries, will be dependent on hydrogen of Antwerp and Zeebrugge, concluded that the create so-called
imports, as the demand for hydrogen exceeds project was both technically and economically
production capacities,” he explained. “Therefore feasible. It considered financial, technical and blue hydrogen
we are seeking worldwide co-operations and regulatory aspects covering an entire hydrogen using its existing
partnerships.” import chain, from production overseas and
While Germany is heavily prioritising green delivery via ships to distribution in Belgium via resources.
hydrogen development at home, it is still open pipelines and industrial applications.
to using blue hydrogen to decarbonise ener- For its part, Belgium is aiming for an 80%
gy-intensive industries. German steelworks reduction in CO2 emissions by 2050, and sees
Thyssenkrupp is studying plans with Equinor hydrogen as critical to meeting this goal. While
to supply the fuel to its production facility in the group envisages bringing green hydrogen
Duisburg. ashore at the terminal, blue hydrogen would
“As an already trusted supplier of natural also be possible.
gas, Novatek is well prepared to develop export “Hydrogen will play a decisive role in the
capabilities for hydrogen,” Schierenbeck said. energy transition and in making our industry

P8 www. NEWSBASE .com Week 05 05•February•2021