Russian LNG producer Novatek and German energy firm Uniper are joining forces to develop hydrogen projects both in Russia and Europe.
The duo signed a memorandum of understanding to kick off the cooperation, Novatek said on Friday.
Under the deal, the two firms plan to develop an integrated hydrogen production, transportation and supply chain, including hydrogen supplies to Uniper’s power stations in Russia and Western Europe.
In addition, the memorandum considers producing “blue” hydrogen from natural gas combined with carbon capture and storage as well as producing “green” hydrogen from renewable energy sources, Novatek said.
Novatek’s chief executive and Russian billionaire Leonid Mikhelson said “hydrogen as a clean burning energy source has broad applications to mitigate climate change and is a promising area for Novatek to develop as part of our long-term strategy.”
“Although in its infancy, the development of commercially scalable production of low carbon hydrogen, together with our joint cooperation with Uniper, one of the leading international energy companies, will allow us to create a solid foundation for building effective long-term relationships in the field of low carbon energy”, he said.
Furthermore, Uniper chief Andreas Schierenbeck said the firm plans to turn its European generation business carbon neutral by 2035. He added that hydrogen would play a major role in achieving these goals.
Germany, like many other heavily industrialized countries, will be dependent on hydrogen imports, as the demand for hydrogen exceeds production capacities.
“Therefore, we are seeking worldwide cooperations and partnerships. As an already trusted supplier of natural gas, Novatek is well prepared to develop export capabilities for hydrogen,” he said.
