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Posted On

05
October
2021

Novatek might launch blue hydrogen plant on Yamal in 2026-2027

MOSCOW. Oct 5 (Interfax) – Novatek is exploring the possibility of building a blue hydrogen plant on the Yamal Peninsula in 2026-2027, the Russian natural gas producer’s CEO, Leonid Mikhelson said in a video address to participants in the LNG Producer-Consumer Conference in Tokyo.

He said the CO2 emissions of Novatek’s Yamal LNG project "do not exceed 0.24 tonnes per tonne of LNG produced."

"At the moment we are working on the methodology for calculating and confirming the emissions of every LNG cargo. Our consumers will be able to see the amount of emissions in detail, which will give them a proper accounting," Mikhelson said.

"Our goal is to ensure undisputed leadership of future LNG plants by environmental criteria thanks to innovation. Now our decarbonisation plans are based on carbon capture and storage (CCS). This technology is the most promising way to reduce carbon dioxide emissions at existing industrial facilities," Mikhelson said.

He said the geological structure of reservoirs on the Yamal and Gydan peninsulas have huge potential, and more than 50 million tonnes of CO2 could be stored there annually.

"We are now working on a pilot project for our production facilities and in future we’re considering the possibility of creating a large CO2 storage cluster here. This would not only make it possible to decarbonize our LNG projects, but also provide the opportunity to store carbon from other production facilities in the world. This concept could potentially ensure the carbon neutrality of Novatek projects by 2035 in the phases of LNG production and transportation," Mikhelson said.

"Furthermore, CCS technology makes it possible to produce so-called blue hydrogen on Yamal. We are now exploring the possibility of launching a plant in 2026-2027. As part of the project we have signed a strategical cooperation agreement with the Japan Bank for International Cooperation and a memorandum with the Ministry of Economy, Trade and Industry of Japan," he said.

"The plant’s product will be used to convert the turbines of our LNG projects to methane-hydrogen fuel and export more than 2 million tonnes of ammonia per year for non-carbon fuel generating facilities throughout the world," Mikhelson said.