Page 8 - FSUOGM Annual Review 2021

FSUOGM FEBRUARY FSUOGM

strategies for developing the fuel, with the use funding into hydrogen now might pay off con-
of both supply- and demand-side subsidies. siderably in the future if the market for the fuel
Novatek, already a key LNG supplier to Europe, takes off.
is eager to carve out a position in this emerging Russia has generally followed hydrogen
sector. developments in Europe with trepidation. If a
There is widespread acceptance that Europe hydrogen energy market emerges, it will take
cannot produce nearly enough green hydrogen market share away from natural gas, jeopardis-
to cover projected demand in the coming dec- ing Russia's role as Europe’s biggest supplier.
ades, and will therefore need imports. Uniper State-owned Gazprom is also working on its
said in November it was considering convert- own hydrogen research. Its focus is on methane
ing its planned LNG regasification terminal pyrolysis, a less-developed means of producing
to receive hydrogen instead. In neighbouring hydrogen from gas. Instead of emitting CO2 that
Belgium, a group of companies led by gas grid needs capturing and storing, the process creates
operator Fluxys and French energy firm Engie valuable solid carbon that has a range of uses in
this month completed a study on a potential industry.
hydrogen import terminal. State nuclear firm Rosatom is also eyeing a
The study, also supported by Belgian shipping role in the hydrogen economy, using electricity
form Exmar, engineering firm Deme, hydrogen from its plants to produce carbon-free so-called
specialist WaterstofNet and the port authorities yellow hydrogen.
of Antwerp and Zeebrugge, concluded that the For Novatek, Gazprom and others to make
project was both technically and economically meaningful progress in hydrogen, though,
feasible. It considered financial, technical and Russia will need to roll out its own subsidies
regulatory aspects covering an entire hydrogen to fund research and development. It will also
import chain, from production overseas and need to craft the necessary legislation to sup-
delivery via ships to distribution in Belgium via port hydrogen production, transportation
pipelines and industrial applications. and use.
For its part, Belgium is aiming for an 80% The government is currently working on its
reduction in CO2 emissions by 2050, and sees own national hydrogen strategy. But given the
hydrogen as critical to meeting this goal. While slow pace of legislative action in Moscow, it
the group envisages bringing green hydrogen could be some time before tangible progress is
ashore at the terminal, blue hydrogen would also made. But failure to act quickly could see Russia
be possible. lose out to other hydrogen exporters in Europe
“Hydrogen will play a decisive role in the and elsewhere.
energy transition and in making our industry Canada is striving to become a major blue
sustainable,” Belgian Prime Minister Alexan- hydrogen exporter, taking advantage of its ample
der De Croo commented. “This study provides gas supply and abundance of underground res-
essential new insights for the further roll-out of ervoirs that can be used to store CO2. Australia
a hydrogen economy and the further reduction wants to claim a slice of a potential Asia-Pacific
of CO2 emissions. The next step is to develop a market for the fuel, by supplying green hydro-
long-term strategy for importing hydrogen.” gen, while Morocco, blessed with substantial
The project partners are working on blue- wind and solar potential, has set its sights on
prints for pilot schemes and will also analyse Europe.
how Belgian ports can receive future hydrogen Political realities might also make it harder
carriers. for Russia to complete with rival exporters
in Europe. It is already the continent’s big-
Enter Russia gest energy supplier, and strained political ties
In addition to appeasing investors, Novatek has between Moscow and the West mean many
recognised that, given uncertainty about the governments want to see its dominant status
world’s energy mix will change, putting some eroded.™

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