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Green Hydrogen H2 News

Russia turns to hydrogen in global energy transformation

Arnes BiogradlijaBy Arnes Biogradlija25/01/20223 Mins Read
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The global decline in demand for resources such as oil, natural gas, and coal, particularly in Europe, forces Russia, whose budget is reliant on these commodities, to look for other sources.

According to Russian President Vladimir Putin’s 2020 energy policy, the government aspires to be the world leader in hydrogen commerce, exporting 0.2 million tons per year by 2024 and 2 million tons per year by 2030.

The Russian Ministry of Energy stated in an April 2021 report that the nation hopes to make $100 billion in yearly revenue from hydrogen exports by 2050.

The Russian government designated hydrogen energy as one of the country’s key objectives in October of last year, announcing that a total of 9 billion rubles (about 120 million) will be committed for the development of this subject over the following three years.

However, changes in the markets Russia seeks to export hydrogen resources, particularly in Asia and Europe, as well as the country’s ability to make the necessary investments to transform its own energy sector into hydrogen production and export, may obstruct the country’s ability to meet these goals.

The Russian government formed a working group in July last year to promote the hydrogen sector, which includes the country’s main energy and industry organizations.

The consortium includes private sector enterprises such as Novatek, Sibur, and Sistema, as well as public sector companies such as Gazprom, the Russian State Atomic Energy Agency (Rosatom), Rosneft, Rostec, and Gazpromneft.

In October, Gazprom and the Russian government signed a memorandum of intent on the development of hydrogen energy, with Gazprom anticipated to be a pioneer in the industry.

The issue is of crucial importance, according to a written statement from Gazprom, which generates around 350 thousand tons of hydrogen and hydrogen-containing gas every year.

On January 19, Anton Moskvin, Vice President of Rusatom Overseas, a Rosatom affiliate, claimed that hydrogen energy is important to the company’s technological development and commercial ventures.

According to Rosatom sources, the country primarily targets the Japanese market by sea, manufacturing hydrogen on Sakhalin, its easternmost island.

Germany, Japan, Denmark, Italy, Australia, the Netherlands, Saudi Arabia, and South Korea are among the country’s primary prospective partners and markets, according to Putin’s authorized energy policy.

Last year, the Russian Ministry of Energy inked two agreements on hydrogen energy development with the United Arab Emirates and Japan.

Novatek and French TotalEnergies announced in March that they were collaborating on a hydrogen production and sales project in the Yamal area.

In its energy policy, Russia prioritizes hydrogen energy generation, which is labeled “yellow” and “blue.” While yellow hydrogen is created with the use of solar energy, blue hydrogen is created through the use of natural gas, which is now the most widely employed method.

Energy specialists claim that the production of blue hydrogen energy consumes too much fossil fuel and so cannot be employed in green energy conversion.

According to the European Union’s reports, the union will prioritize the import of hydrogen energy generated from renewable energy sources and labeled “green” in the future, but will be more cautious about the development of blue hydrogen.

Given its abundant water resources and wind energy production capabilities, Russia is expected to play a significant role in hydrogen manufacturing in the future.

Putin’s Special Representative for Sustainable Development, Anatoly Chubays, claimed that blue hydrogen is Russia’s top priority, but that due to changes in export markets, they plan to transition to green hydrogen production in the future.

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