Page 5 - AsiaElec Week 44

AsiaElec COMMENTARY AsiaElec

a major challenge for Japan, even though it is
following other G7 industrialised nations such China and Japan), as well as existing transpor-
as the UK, Germany and Canada in making the tation infrastructure.
commitments. Indeed, Sorokin mentioned that Japan,
Crucially, Japan still plans to have coal and China and South Korea, as well as European
gas generating 56% of its power by 2030, well countries such as Germany and France, were
behind the IEA’s recent guidelines for reaching promising export destinations
net zero by 2050. He highlighted that hydrogen could be used
Indeed, the Japanese government said in in transportation, oil refining and the produc-
October that it planned to develop a hydrogen tion of electricity, chemicals and fertilisers.
import network that could supply 300,000 tpy of Sorokin stressed that cutting transportation
the gas by 2030. It mentioned Australia and Bru- costs and safe transit will be the biggest chal-
nei as possible sources, and Russia is now being lenge for Russia’s hydrogen exports. He said
added to that list. Russia was considering mixing hydrogen into
existing gas pipelines for Europe and transport-
Grey and blue ing hydrogen by ship to Japan and other Asian
Sorokin’s comments come as the government countries.
said in July that it would have a draft full hydro- Sorokin’s comments come after Russian
gen development strategy by the end of 2020. Energy Minister Alexander Novak said in
Sorokin confirmed that producing hydro- October that Russia was focusing on hydro-
gen from natural gas, so-called grey hydrogen, gen development as the world shifts toward
would initially be the most economical way. decarbonisation.
He said that grey hydrogen production costs
would be 25-50% of those for blue hydrogen, IEA data
produced by using renewable energy to electro- The International Energy Agency (IEA) pre-
lyse water. dicts that global hydrogen demand will surpass
He predicted that demand for grey hydrogen 130mn tonnes in 2040 and 500mn tonnes by
will also increase in the meantime, even though 2070, up from 71mn tonnes in 2019.
many customers would gradually opt for blue The IEA said in its hydrogen report in 2019
hydrogen that the gas could play a larger role in decarbon-
The first hydrogen producers are expected isation, especially in industrial sectors where
to be Gazprom and Rosatom, while technology reducing emissions is proving to be difficult.
conglomerate Rostec and the Russian Academy The IEA identified long-haul transport,
of Sciences have begun the development of and chemicals and iron and steel production as being
market research on production and exports of ideal candidates for using hydrogen.
hydrogen. “Hydrogen is today enjoying unprecedented
Gazprom estimates the hydrogen market to momentum, driven by governments that both
be worth €153bn ($179bn) by 2050, while the import and export energy, as well as the renew-
ministry puts the figure at $32bn-164bn. ables industry, electricity and gas utilities,
The competitive advantages of Russia in the automakers, oil and gas companies, major tech-
growing market could be excess generating nology firms and big cities,” said IEA chief Fatih
capacities, proximity to main consumers (EU, Birol said in 2019.™

Week 44 04•November•2020 www. NEWSBASE .com P5