Page 4 - FSUOGM Week 09 2021

FSUOGM COMMENTARY FSUOGM

Germany, Russia eye

hydrogen alliance

The strong energy partnership between Germany and

Russia is set to undergo significant change

RUSSIA GERMANY and Russia are looking to enhance abundant untapped reserves of natural gas that
their energy relationship by establishing new ties can be converted into so-called blue hydro-
WHAT: in hydrogen technology. gen through processes such as steam methane
Germany wants to secure Germany is Russia’s largest gas customer, reforming. CO2 emissions from the process
hydrogen supplies from while Russia is Germany’s biggest natural gas can be stored underground, potentially in some
Russia. supplier. But this relationship is set to undergo of the larger depleted oil and gas reservoirs in
change, as Germany and other European coun- Siberia.
WHY: tries look to decarbonise their economies. Russia could also supply green hydrogen
Russia has substantial One decarbonisation solution is hydrogen, to Europe, if it makes better use of its huge but
natural gas that could be which can be used to power industry currently under-exploited wind and solar resources.
converted to hydrogen, fuelled by natural gas. Germany’s government Russia and Germany share a direct pipeline
and the Nord Stream 1 last summer set aside €7bn ($8.4bn) in financial connection, the 55bn cubic metre per year Nord
and 2 could play a role in support for domestic production of so-called Stream 1 pipeline, and the launch of the Nord
delivering the fuel. green hydrogen, produced through electrolysis Stream 2 would double capacity to 110 bcm per
from water, with the process powered by renew- year. These pipelines could be converted to carry
WHAT NEXT: able energy. But German authorities have also hydrogen, or could continue supplying gas for
Gazprom, Novatek and recognised that hydrogen imports will be nec- producing hydrogen in northern Germany.
Rosatom are seen as essary to meet the country’s needs, allocating a
the main candidates for further €2bn to help establish partnerships with Hydrogen ties
helping Russia establish other countries. German gas firm Wintershall Dea is continu-
itself as a hydrogen Germany has reached out to a number of ing consultations with its Russian partner Gaz-
exporter. potential hydrogen suppliers, as far afield as prom on options to convert some Russian gas to
Australia and Canada. But its main focus has hydrogen on arrival in Germany, Wintershall
been establishing partnerships with Russia in board member Thilo Wieland said in a confer-
this field. ence call on February 25. The two companies are
This is a logical partnership. Russia has also discussing ways to transport hydrogen in a

P4 www. NEWSBASE .com Week 09 03•March•2021