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NOVATEK to supply blue ammonia and hydrogen to RWE as part of a new MoU

The fuel is to be produced at Novateks’s planned Obskiy GCC project and will be delivered to RWE and its customers in Germany and other European markets

NOVATEK to supply blue ammonia and hydrogen to RWE as part of a new MoU

Moscow, December 7 - Neftegaz.RU. The largest independent producer of natural gas in Russia NOVATEK and German multinational energy company RWE Supply & Trading GmbH signed a Memorandum of Understanding (MOU) to mutually cooperate in the field of LNG supply and decarbonization.

Lev Feodosyev, NOVATEK’s 1st Deputy Chairman of the Management Board, said:
  • We are very well positioned to benefit from the transition of global economies to low carbon energy sources
  • Natural gas including LNG is already replacing other types of fuels with higher carbon footprint, and we are working on decreasing the already low carbon footprint of LNG produced by our projects in the Russian Arctic
  • Now we are undertaking the pre-FEED study for the blue ammonia and hydrogen plant with CCS facilities nearby our LNG cluster in Yamal for the delivery to final customers of low-carbon products in Europe and Asia
The MOU envisages the supply by NOVATEK to RWE of low-carbon ammonia and hydrogen to be produced at the company’s planned project Obskiy GCC (Gas Chemical Complex) and delivered to German and European markets.

The partners also intend to extend their cooperation in supply of LNG including possible carbon-neutral LNG, by NOVATEK to RWE by expansion of existing spot supplies as well as possible long-term supplies of LNG to be produced by the Arctic LNG 2 and other NOVATEK’s projects.

The trend towards greater transparency on greenhouse gas emissions is supported by both companies and marks an important 1st step towards the potential use of carbon credits to offset any remaining emissions.

Javier Moret, Global Head of LNG at RWE Supply & Trading emphasises:
  • Europe has set ambitious climate targets, to achieve them, renewables must be expanded massively and quickly
  • At the same time, however, we need a flexible generation as a back-up to guarantee security of supply
  • The ultimate goal is for plants powered by green energy sources to take over this task, such as gas-fired power plants fuelled by green hydrogen
  • But until that point is reached, bridge solutions such as gas, LNG and blue hydrogen will be needed
  • We are therefore very pleased to be working with Novatek to evaluate possibilities to supply Europe with large quantities of blue and green hydrogen
To read the news in Russian

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