Page 9 - FSUOGM Week 29 2021

FSUOGM COMMENTARY FSUOGM

Stream 2, Chancellor Merkel and I are absolutely including sun, wind and biomass,” Vitrenko said.
united in our conviction that Russia must not be “Therefore they want us to produce renewable
allowed to use energy as a weapon to coerce or energy, which in the form of green hydrogen,
threaten its neighbours,” the US president said. produced from green energy, would be trans-
“It made more sense to work with the chancel- ported to Germany, where it would be consumed
lor on finding out how she’d proceed based on as energy.”
whether or not Russia tried to, essentially, black- The two sides discussed pilot projects with
mail Ukraine in some way.” specific German companies, the CEO contin-
“We’ve come to different assessments as to ued, adding that a series of meetings would take
what this project entails,” Merkel added. “But let place to take the collaboration forward.
me say very clearly: our idea is and remains that Ukraine has established itself as a significant
Ukraine remains a transit country for natural wind and solar producer after attracting out-
gas.” side investors to projects in the years following
its revolution in 2014. It now boasts 7,331 MW
Germany eyes Ukrainian hydrogen? of solar generation capacity as of the end of last
Ukrainian authorities have also been lobbying year, along with 1,402 MW of onshore wind
in Berlin for the German government to adopt a capacity, up from only 188 and 146 MW respec-
tougher stance concerning Nord Stream 2. tively at the end of 2011.
A delegation from Ukraine was also in the While Germany is reaching out to Ukraine
German capital this month, and while Nord as well as some North African states for green
Stream 2 took centre stage in discussions, Ger- hydrogen supplies, it is also in talks to obtain blue
many also expressed its interest in importing hydrogen from Russia. But it could take time for
green hydrogen from Ukraine, the head of the these supplies to materialise, as Russia is yet to
Ukrainian national gas company Naftogaz, Yuriy advance any carbon capture and storage (CCS)
Vitrenko, said on local television on July 17. projects necessary to produce hydrogen from
“In Ukraine there are really huge opportu- natural gas cleanly, and nor has it developed the
nities for the development of renewable energy, regulations to govern such investments. ™

PIPELINES & TRANSPORT

Novatek sets up small-

scale LNG business

RUSSIA RUSSIA’S largest LNG exporter Novatek has Russian authorities want to see the sector grow
established a subsidiary to target the domestic in order to reduce emissions from road transport
Novatek is eyeing market for the super-cooled gas as well. and lower transport costs, which would boost
LNG sales as a motor The subsidiary, Novatek LNG Fuel, would the international competitiveness of many Rus-
transport fuel and as an be tasked with building small-scale liquefaction sian industries. Gazprom estimates that convert-
energy source to remote plants, Novatek said last week, and would also ing vehicles to natural gas can reduce fuel costs
consumers. carry out the retail sale of LNG for use as a vehi- by up to 60%.
cle fuel and for expanding access to the popula- Russian authorities have already introduced
tion in areas without pipeline access. support mechanisms to expand gas use in vehi-
LNG is environmentally friendlier than cles, including subsidies that partially cover the
conventional motor fuels, but supporting its cost of vehicles. The country’s energy ministry is
use requires the development of refuelling eager to do more, proposing in March a zero-im-
infrastructure and the installation of necessary port duty on overseas-produced equipment
equipment on vehicles. Novatek currently has needed for small-scale liquefaction plants, and
12 LNG filling stations across Russia, as well for vehicles that run on the fuel.
as a plant in the Chelyabinsk region capable LNG is viewed as more suitable for heavy
of producing 40,000 tonnes per year (tpy) of goods, long-distance road transport, whereas
LNG. passenger cars and other light vehicles are better
The company’s rivals Gazprom and Rosneft served with compressed natural gas. There are
are also pursuing opportunities in the emerging currently only a handful of LNG stations, versus
natural gas vehicles (NGVs) market. Meanwhile, 530 CNG stations. ™

Week 29 21•July•2021 www. NEWSBASE .com P9