Novatek to cooperate on hydrogen with Severstal and TotalEnergies
Given that the steel industry is one of the largest industrial consumers of natural gas, the partnership will help reduce greenhouse gas emissions.
Novatek and Severstal agreed to cooperate on a joint pilot project to produce blue hydrogen from natural gas and use technologies for carbon capture and storage to reduce greenhouse gas emissions.
Novatek and Severstal agreed to develop technical requirements, standards, and engineering solutions to produce and supply hydrogen transport pipelines, turbines, hydrogen storage systems, and hydrogen transport tanks. They also agreed to cooperate on the production and supply of hydrogen, technological development for hydrogen-based applications, specifically ammonia.
Both companies signed a Memorandum of Understanding today (4th June) during Saint-Petersburg International Economic Forum, which is an annual Russian business event.
Leonid Mikhelson, Chairman of the Management Board of Novateck, said, “The use of carbon capture and storage technologies, as well as a hydrogen fuel blend, will reduce our joint carbon footprint and increase the competitiveness of products manufactured by the Russian steel industry.”
Alexey Mordashov, Chairman of the Board of Directors of Severstal, said, “We expect to see rapid growth in technologies and projects for the capture and storage of CO2 as well as for the production of hydrogen, both in Russia and globally, which will open up a host of development opportunities for our companies.”
Meanwhile, Novatek and a subsidiary of TotalEnergies SE agreed on the production and usage of hydrogen as a low-carbon fuel and developing and deploying technologies to convert gas turbine equipment to hydrogen fuel. Both partners also agreed to reduce emission at joint projects by implementing carbon capture and storage technologies, utilising renewable energy sources at joint LNG projects, and marketing of carbon-neutral products, including LNG.
Commenting on the Novatek and TotalEnergies cooperation agreement, Mr Mikhelson said, “With our long-term partner TotalEnergies, we are implementing technical solutions to reduce our carbon footprint on our Yamal LNG and Arctic LNG 2 projects and increase the competitiveness of our LNG products.”