Gazprom Neft, NLMK to develop low-carbon energy

MOSCOW. Sept 7 (Interfax) – Russian oil and gas company and Gazprom Neft and global steel company NLMK have signed a memorandum on cooperation in developing production, transportation, storage, and use of hydrogen, as well as development of technology for carbon dioxide utilization.

Gazprom Neft signed similar agreements with Severstal and Evraz in June 2021.

Gazprom Neft said in a press release that it and NLMK planned to develop projects in CO2 capture and storage, as well as hydrogen power. Among other things, the companies will work on opportunities to apply hydrogen in steel production, as well as to apply natural gas and renewable energy sources for environmentally friendly hydrogen production. The companies plan to research and develop technology for hydrogen transportation and storage.

Gazprom Neft already has technology for closed-cycle CO2 collection and re-injection into oil reservoirs at a depth of over 2,500 meters. These solutions have been applied at the Rusanda field of NIS, a joint venture between Gazprom Neft and the Republic of Serbia, since 2015.

As of now, Gazprom Neft has already produced over 100,000 tonnes of hydrogen at its own processing areas and plans to reach 250,000 tonnes by 2024.