RWE and Novatek have signed a memorandum of understanding to cooperate more closely on the subject of low-carbon and carbon-free fuels.
The memorandum of understanding provides for the supply of “blue” ammonia and hydrogen by Novatek to RWE. Russia’s largest independent natural gas producer is currently conducting a so-called pre-FEED (Front End Engineering Design) study for this purpose. It is investigating the possibilities for producing blue ammonia and hydrogen in the Yamal region. The blue hydrogen is to be produced from natural gas using carbon capture and storage (CCS). The fuel is to be produced at Novatek’s planned Obskiy Gas Chemical Complex and supplied to RWE and its German and European customers.
RWE and Novatek also intend to expand their cooperation in the liquefied natural gas (LNG) business. Both companies support the trend towards greater transparency in greenhouse gas emissions and therefore intend to explore opportunities to use carbon credits for the use of LNG.
Javier Moret, Head of RWE Supply & Trading’s global LNG business, emphasizes: “Europe has set itself ambitious climate protection targets. To achieve them, renewable energies must be expanded massively and quickly. At the same time, however, it also needs a flexible power supply as a back-up for security of supply. This task is ultimately to be performed by plants that will be powered by green energy sources in the future – for example, gas-fired power plants that use green hydrogen. But until that happens, interim solutions such as gas, LNG and blue hydrogen will be needed. We are therefore very pleased to be working with Novatek to supply Europe with large quantities of blue and green hydrogen in the future.”
“We are very well positioned to benefit from the global economy’s transition to low-carbon energy sources,” said Lev Feodosyev, first vice chairman of Novatek. “Natural gas, including LPG, is already replacing other fuels with higher CO2 emissions. And we are working to further reduce the already low carbon footprint of our LNG produced in the Russian Arctic. With our study, we are now investigating the feasibility of a plant near our LNG cluster on Yamal. There, we could produce blue ammonia and hydrogen using CCS and use it to supply end customers in Europe and Asia.”
With its ‘Growing Green’ investment and growth strategy, RWE plans to invest €50 billion gross in the current decade to expand its green and flexible generation portfolio. With an installed capacity of 14 gigawatts (GW), RWE currently operates the second largest gas-fired power plant park in Europe.
Additional plants with a clear decarbonization roadmap are planned as part of ‘Growing Green’; a green conversion roadmap is being developed for all existing gas-fired power plants. RWE will also significantly expand its green energy trading and its range of tailored energy solutions for large customers. For example, RWE plans to develop new business opportunities in hydrogen and ammonia imports to supply industry in Europe.
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