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GTSOU and EBRD join forces to boost low-carbon hydrogen in Ukraine

The Gas Transmission Operator of Ukraine (GTSOU) signed an agreement with the European Bank for Reconstruction and Development (EBRD) to promote the development and use of hydrogen in Ukraine. The cooperation is expected to advance low-carbon hydrogen and the development of hydrogen supply chains.

The EBRD and GTSOU previously signed a Memorandum of Understanding in April 2020 that would provide a general framework to improve the environment for sustainable energy investments in Ukraine and reduce the level of greenhouse gas emissions, in particular methane fugitive emissions and air pollution.

The EBRD launched a study on the potential for developing different segments of the hydrogen supply chain across many of the economies where it invests, including Ukraine and found that the region is characterised by a growing renewable energy industry, which is expected to continue. In certain countries, recent renewable energy electricity prices have fallen below 30 US dollars per megawatt-hour (MWh)– a level at which production of green hydrogen starts to become competitive with conventional fossil fuels.

“I am very pleased that the EBRD and GTSOU are cooperating to support each other’s activities regarding hydrogen,” said Harry Boyd-Carpenter, EBRD Managing Director of Green Economy and Climate Action.

“Ukraine relies heavily on fossil fuels across all sectors of its economy and hydrogen can represent a good alternative for decarbonisation, and reduce reliance on fossil fuels,” he underlined.

Sergiy Makogon, CEO of GTSOU highlighted that hydrogen is one of the most promising energy sources, which will contribute significantly to energy decarbonisation and achieving sustainable development goals. He noted that the challenge is to scale up hydrogen use, to create the necessary conditions and infrastructure for its production, transportation and consumption. However, all this requires time, effort and cooperation by all stakeholders.

“We recognise the role of natural gas as one of the key energy sources and transition fuel on the path to a carbon-free economy, which will remain significant for this transition period,” underlined Mr Makogon adding that as the operator of the gas transmission system, the task of GTSOU is to prepare its infrastructure for the decarbonised energy markets of the future.

This month, Ukraine’s GTSO also joined the European Clean Hydrogen Alliance. The company’s CEO highlighted that the transportation of renewable gases both within Ukraine and to the EU will make a significant contribution to the implementation of the EU Green Deal and maintain Ukraine’s status as a reliable partner in energy security.

In a recent interview with CEENERGYNEWS Minister of Foreign Affairs of Ukraine Dmytro Kuleba said that Ukraine’s Hydrogen Strategy is underway as well as the assessment of the possibility of using the gas transit system for hydrogen transportation to EU countries. Ukraine will launch its first hydrogen pilot projects in 2022.

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