Russia’s largest independent natural gas producer Novatek signed a Memorandum of Understanding (MoU) with Germany energy group RWE Supply & Trading to mutually cooperate in the field of liquified natural gas (LNG) supply and decarbonisation.
The MoU envisages the supply by Novatek to RWE of low-carbon ammonia and hydrogen to be produced at the Company’s planned project Obskiy Gas Chemical Complex (GCC) and delivered to German and European markets.
The Parties also intend to deepen their cooperation in the supply of LNG (including carbon-neutral LNG) by Novatek to RWE by the expansion of existing spot supplies as well as possible long-term supplies of LNG to be produced by the Arctic LNG 2 and other Novatek’s projects.
“We are very well-positioned to benefit from the transition of global economies to low carbon energy sources,” said Lev Feodosyev, Novatek’s First Deputy Chairman of the Management Board. “Natural gas including LNG is already replacing other types of fuels with higher carbon footprint, and we are working on decreasing the already low carbon footprint of LNG produced by our projects in the Russian Arctic. Now we are undertaking the pre-FEED study for the blue ammonia and hydrogen plant with CCS facilities nearby our LNG cluster in Yamal for the delivery to final customers of low-carbon products in Europe and Asia.”
“Europe has set ambitious climate targets,” emphasised Javier Moret, Global Head of LNG at RWE Supply & Trading. “To achieve them, renewables must be expanded massively and quickly. At the same time, however, we need a flexible generation as a backup to guarantee the security of supply. 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. We are therefore very pleased to be working with Novatek to evaluate possibilities to supply Europe with large quantities of blue and green hydrogen.”
With its investment and growth strategy Growing Green RWE wants to invest 50 billion euros gross through to 2030 to grow its green and flexible generation portfolio. Thanks to an installed capacity of 14 gigawatts (GW), RWE is currently operating the second-largest gas-fired power station fleet in Europe. In the context of Growing Green, additional plants, which will have a clear decarbonisation roadmap, are planned and a roadmap for green conversion will be developed for all existing gas-fired power stations. RWE will also significantly expand its trading in green energy sources and its range of tailored energy solutions for large customers. RWE plans therefore to open up new business opportunities in the areas of hydrogen and ammonia importing, in order to supply industry in Europe.