Novatek and RWE cooperate on hydrogen

RWE and Novatek have signed a Memorandum of Understanding to cooperate on the supply of low-carbon and carbon-free fuels.

The MoU envisages the supply of low-carbon ammonia and hydrogen by Novatek to RWE. Novatek, the largest independent producer of natural gas in Russia, is conducting a pre-FEED (Front End Engineering Design) study for blue ammonia and hydrogen production in the Yamal region, including carbon capture and storage (CCS) facilities. The fuel is to be produced at Novateks’s planned Obskiy Gas Chemical Complex project and will be delivered to RWE and its customers in Germany and other European markets.

Javier Moret, Global Head of LNG at RWE Supply & Trading, said, “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.”

Lev Feodosyev, Novatek’s First Deputy Chairman of the Management Board, added, “Natural gas including LNG is already replacing other types of fuels with a higher carbon footprint.”

Previously, RWE, CO2Grab, LSF and Benteler Steel/Tube agreed to build a pioneering direct reduction test plant with hydrogen in RWE’s Lingen power plant site in Germany by 2022. During the first stage of the research project, over 1 tonne/hour of green iron (sponge iron) will be produced using green hydrogen. Green hydrogen will be produced in electrolysers on the power plant site and fed into the DRI plant.

CO2GRAB, a startup, will build and operate the plant, ideally complements RWE’s knowledge along the entire green hydrogen value chain. LSF will optimise electrolyser operation for fluctuating wind and solar power generation. Benteler Steel/Tube will process the reduced sponge iron further to green steel and climate-neutral quality tubes. CO2GRAB  will also receive €3 million in state funding.