Page 9 - EurOil Week 29 2021

EurOil COMMENTARY EurOil

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

US, Germany promise action against

Russia in Nord Stream 2 deal

RUSSIA US and Germany plan to take action against Rus- provide valuable transit revenues. But the US
sia if it uses Nord Stream 2 to harm Ukraine or has warned that Russia will use the pipeline
A bilateral agreement other East European countries, Reuters reported as a tool to assert political pressure in Europe,
on Nord Stream 2 has on June 20 citing sources. although Moscow accuses Washington of
been reached by Berlin The report comes after talks between US simply looking out for the interests of its US
and Washington and is President Joe Biden and German Chancellor exporters.
due to be announced Angela Merkel on July 15, after which the two The bilateral agreement will avert the
imminently. leaders stressed that they would work together resumption of congressionally mandated sanc-
to ensure that Ukraine would remain a transit tions against the Nord Stream 2 operating com-
route for Russian gas heading to Europe. Russia pany and its CEO, according to Reuters. Those
wants to use Nord Stream 2 to divert as much gas sanctions were waived by Biden in May, to allow
as away from Ukraine as possible, to reduce costs time for consultations with Germany. However,
and starve Kyiv of billions of dollars of annual the Biden leadership reserves the right to apply
transit revenues. the sanctions on a case-by-case basis, sources
A bilateral agreement on Nord Stream 2 has said.
been reached by Berlin and Washington and is For its part, Germany has agreed to provide
expected to be announced imminently, accord- Ukraine with $1bn to support its transition
ing to Reuters. to cleaner energy, supplied by private sources
Germany wants to see Nord Stream 2 backed with government guarantees, the news
realised, as it will enable the country to tap agency said. This includes an initial investment
lower-cost gas to support its economy and of $175mn, according to Bloomberg. ™

Week 29 22•July•2021 www. NEWSBASE .com P9