Thursday, January 27, 2022

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Naftogaz and RWE sign memorandum of understanding on hydrogen

NJSC Naftogaz of Ukraine and German energy trading company RWE Supply & Trading have signed a memorandum of understanding to explore mutually beneficial cooperation opportunities along the full value chain of green hydrogen and its derivatives like ammonia produced in Ukraine.

This includes the development of green hydrogen and ammonia production and storage in Ukraine and its import to Germany. This focus is particularly relevant in the context of the H2Global initiative launched by the German government for green hydrogen imports produced outside the EU.

The partners intend to jointly explore commercial opportunities for the sale of Ukrainian green hydrogen in European markets, with a focus on RWE’s core markets and consider sharing knowledge of technical aspects along the value chain for green hydrogen.

“Ukraine has great potential for the development of the hydrogen economy in cooperation with Germany,” commented Naftogaz CEO Yuriy Vitrenko adding that as a national company, Naftogaz is ready to be a pillar of this development.

“We consider green hydrogen as our strategic priority, and we are happy to work on it with RWE, our reliable partner in trade and natural gas supplies,” underlined the CEO of Naftogaz.

Ulf Kerstin, Member of the Board RWE Supply & Trading highlighted that hydrogen will be key to the decarbonisation of the industry, as certain parts cannot be electrified with renewable energy.

“As a partner of the industry, RWE is part of that solution. We are very pleased to jointly explore with Naftogaz opportunities for the supply of green hydrogen from Ukraine in future,” said Mr Kerstin.

Working groups representing the two companies will start working together within the next month. According to Oleksiy Ryabchyn, advisor to the Naftogaz CEO responsible for developing low-carbon businesses, Naftogaz is ready to be a driver for the implementation of hydrogen projects in Ukraine. The signing of the memorandum is the first important step towards working with German partners to develop the hydrogen business and new green areas of activity for Naftogaz.

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