Novatek and Uniper develop hydrogen value chain

Novatek, Russia’s second-largest natural gas producer and Uniper, a German energy company, have signed a memorandum of understanding (MOU) to explore the potential for developing a hydrogen value chain, allowing both companies to assess their demand and supply structure.

Both partners will look into all aspects of the value chain from production to delivering hydrogen to Uniper’s power stations in Russia and Western Europe. They will take into account producing green hydrogen by using renewable, and blue hydrogen from natural gas in integration with a carbon storage system.

Leonid Mikhelson, the Board Chairman of the Management Board of Novatek, said that hydrogen as a clean-burning energy source to play a vital role in Novatek long-term strategy. The cooperation with Uniper will support us in achieving our long-term goal of developing low carbon fuel.

Novatek has recently become active in the hydrogen market. Early this month it signed an MoU with NLMK Group, one of Russia’s largest steelmakers, to reduce emissions by exploring carbon capture utilisation and storage (CCUS) as well as hydrogen production for burning as a fuel.

In December last year, Novatek signed a strategic partnership and cooperation agreement with Siemens Energy to develop and implement high-tech solutions for the production of LNG, power, hydrogen etc to help reduce emission. Both agreed to work on a project to replace natural gas in the power generation with clean hydrogen.