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The Sakhalin region to become Russia’s hydrogen hub

Rusatom Overseas, a subsidiary of Russian nuclear energy company ROSATOM signed a Memorandum of Understanding with Air Liquide, a leading industrial gas producer and the Government of the Sakhalin region for a feasibility study that will explore the possibility of the development of low carbon hydrogen production in the Sakhalin region.

The MoU is a first step in fostering the development of a hydrogen economy targeting applications in both the domestic and overseas markets. This will contribute to the development of the low carbon industry in the Sakhalin region.

“We are delighted to explore this energy transition opportunity in cooperation with Rusatom Overseas and the Sakhalin region,” said Marilene Turcotte, General Director of Air Liquide in Russia. “This cooperation for decarbonised growth contributes to the objectives of the Sakhalin region to reach carbon neutrality by 2025.”

“In the future, the creation of a complex for the production of low-carbon hydrogen on the island of Sakhalin opens up opportunities for its export to the countries of the Asia-Pacific region,” added Evgeny Pakermanov, President of Rusatom Overseas. “We plan to receive the results of the technical and economic assessment of the project and the primary design documentation by the end of 2021, after which we will be able to make the most efficient decision on the volume of hydrogen production. It is expected that the production rate can range from 30,000 to 100,000 tons per year.”

The Governor of Sakhalin Region Valery Limarenko signed also an agreement with the Ministry of Far East and Arctic Development and ROSATOM concerning the cooperation in the project Creation and Development of the Hydrogen Cluster.

The agreement calls for cooperation in the entire range of areas, including the construction of a hydrogen production facility; organisation of the chain of supply of hydrogen to external markets and local consumers; creation of a hydrogen fleet together with companies which implement projects in this area. Also, a competence centre in hydrogen and other clean technologies is planned to create in Sakhalin State University, which would train staff, transfer technologies and exchange experience.

“The large-scale project in Sakhalin could become the flagship project for the development of this high-technology area in Far East,” pointed out Russian Minister for Far East and Arctic Development Aleksei Chekunkov. “The region has a number of powerful competitive advantages: geographic proximity to potential large consumers of hydrogen, scientific headstart and comprehensive governmental measures to support investment projects. The success of the Sakhalin project would allow circulating experience in other Far East regions.”

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