Gazprom Neft and Rusatom Overseas (RAOS PJSC, a subsidiary of the Rostatom state organization) have signed an agreement on cooperation in hydrogen energy and carbon dioxide emissions reduction.

The agreement was signed during the 10th Anniversary St Petersburg International Gas Forum by Vadim Yakovlev, Deputy Chairman of the Management Board, Gazprom Neft, and Evgeny Pakermanov, President, RAOS PJSC.

The two firms have agreed to collaborate on exploring alternatives for transporting and storing carbon dioxide created during the manufacture of hydrogen as part of Rosatom’s Sakhalin Island initiatives. Gazprom Neft will conduct technical and commercial research on carbon dioxide recycling. The parties will also explore opportunities for collaboration in other areas related to decarbonizing manufacturing facilities. Carbon dioxide recycling technologies are compatible with the Sustainable Development Goals (SDGs) and are gradually becoming industry standard practice.

Rosatom is constructing a plant in the Sakhalin Oblast to create hydrogen from natural gas. The unit is planned to produce between 30,000 and 100,000 tonnes of hydrogen per year. The company will evaluate Gazprom Neft’s experience with closed-cycle CO2 capture and injection at depths of several kilometers, as well as the prospects for recovering CO2 emitted during the Sakhalin project’s hydrogen generation. Similar solutions have been successfully used at the Rusanda field by Serbia’s NIS (a joint venture between Gazprom Neft and the Republic of Serbia).

“Our company is part of the global trend in transitioning to low-carbon energy and decarbonising production facilities. Oil-industry specialists have considerable experience in capturing and injecting gas into geological formations, and we are in a position to offer our company’s skills and competencies to companies in related industries — including low-carbon hydrogen production on Sakhalin,: said Vadim Yakovlev Deputy Chairman of the Management Board, Gazprom Neft.

“The issue of achieving carbon neutrality is becoming ever more urgent for many of Russia’s regions, and demand for cutting-edge technologies in this area can only grow. It’s beyond question that our cooperation with Gazprom Neft in organising carbon dioxide handling as part of our hydrogen projects on Sakhalin is going to play a key role in implementing our major programme to develop a carbon-free economy in the region, and to deploy the best technological solutions there. We also see prospects for cooperating on decarbonisation projects in other Russian regions, and look forward to working together,” said Evgeny PakermanovPresident, RAOS PJSC.

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