Page 6 - GLNG Week 29 2021

GLNG COMMENTARY GLNG

Novatek sets up carbon-

cutting team

The committee will review Novatek’s business operations and

make recommendations on the company’s strategy on climate

and decarbonisation issues

ENERGY RUSSIA’S Novatek has put together a team Harnessing the wind and the underground
TRANSITION of its directors to look at ways of tackling its Among Novatek’s plan is a scheme to generate
greenhouse gas (GHG) emissions, even while wind power on the Yamal Peninsula, where its
WHAT: it pursues a rapid expansion in its liquefaction Yamal LNG facility is located. Average wind
Novatek has created capacity. speeds there are estimated to be as high as
a sub-committee on Novatek like other Russian oil and gas compa- around seven metres per second, thanks to the
climate and alternative nies is paying closer attention to its environmen- lack of trees.
energy. tal social and governance (ESG) score than ever Kommersant reported in June that Novatek
before, amid increased climate consciousness was looking to establish a 200-MW wind farm
WHY: among investors. Besides setting 2030 targets for on the peninsula, at a cost of RUBA12-14bn
The company is paying reducing its emissions, the company is drawing ($166-194mn). Danish developer Vestas is
closer attention to its ESG up plans for a number of green projects, ranging tipped as the most likely company to win the
score than ever before. from wind farms on Yamal to hydrogen-fired construction contract. It is estimated that
power turbines to carbon capture and storage the facility would reduce Yamal LNG’s CO2
WHAT NEXT: (CCS). emissions by 240,000-260,000 tonnes per year
Novatek has plans for Novatek’s directors approved last week the (tpy).
a range of low-carbon creation of a special six-member steering com- Novatek also recently proposed reconfigur-
technologies in the mittee on climate and alternative energy. The ing its Obsk LNG plant to produce clean hydro-
Russian Arctic, including committee includes several Novatek directors gen, methanol and ammonia from natural gas.
wind power, hydrogen and is chaired by Dominique Marion, an inde- The hydrogen could then be used as a power
fuel use, ammonia and pendent director with a background in geology source for its facilities, while the methanol and
methanol production that currently works as vice-president of France’s ammonia could be shipped overseas. No final
and carbon capture and TotalEnergies, one of Novatek’s shareholders. investment decision (FID) has been taken on
storage. The committee will review Novatek’s business this plan, though, and NewsBase understands
operations and make recommendations on the that Obsk LNG might still produce LNG as well,
company’s strategy on climate and decarboni- though in smaller quantities.
sation issues, including the use of renewable In order to make these fuels from gas cleanly,
energy sources and the potential for producing though, CCS must be available. Novatek has
low-carbon fuels such as hydrogen. undertaken studies over the past year on

P6 www. NEWSBASE .com Week 29 23•July•2021