Novatek, Uniper Pen Deal on Hydrogen Supply
Russian LNG exporter Novatek has signed a memorandum with Germany's Uniper on exploring the development of a hydrogen supply chain, it said on January 29.
Under the accord, the pair will set out to develop an integrated chain for the production, transport and supply of hydrogen, including to Uniper's power plants in Russia and west Europe. This hydrogen is expected to be both blue, produced from natural gas with the CO2 from the process captured and stored, and green, derived from water using renewable energy.
"Hydrogen energy contributes to the prevention of climate change and is a promising area of Novatek's long-term development strategy," CEO Leonid Mikhselon said. "The development of commercially viable low-carbon hydrogen production is in its early stages, and our joint co-operation in this area with Uniper, one of the leading international energy companies, will lay a solid foundation for further building long-term relationships."
Novatek signed an agreement in December with Germany's turbine manufacturer Siemens on developing carbon-cutting technologies such as hydrogen. The pair are understood to be devising a plan to convert one of Yamal LNG's gas-fired power generators to run mostly on hydrogen. The Russian company also reached a memorandum earlier this month with steelworks NLMK Group, one of its biggest customers in Russia, on potential hydrogen use.
Like many other European gas firms, Novatek is responding to increased climate concerns among investors and offtakers. It announced a series of 2030 environmental targets last August.