2 Sep 2021 16:46

Novatek, JBIC sign cooperation agreement on hydrogen, ammonia, CO2 and renewables

VLADIVOSTOK. Sept 2 (Interfax) - Novatek and Japan Bank for International Cooperation (JBIC) signed a Strategic Cooperation Agreement on low-carbon projects during the Eastern Economic Forum (EEF), the Russian gas company said in a press release.

The parties intend to cooperate on projects to produce hydrogen and ammonia, carbon capture, utilization, and storage technologies, as well as renewable energy projects in Russia, including ammonia and hydrogen production projects in the Yamal Peninsula.

"We are actively studying options to further reduce our current low carbon footprint from Novatek's LNG production by using renewable energy sources, carbon capture and storage and hydrogen-based fuels at our LNG projects," said Novatek CEO Leonid Mikhelson.

"This Strategic Cooperation Agreement provides opportunities for us to work with Japanese companies and financial institutions on developing our low-carbon solutions, attracting investments and expanding the range of suppliers of state-of-the-art equipment and technologies. Moreover, it facilitates opportunities for us to market our clean fuel products to a wider range of consumers from Japan to reduce the total carbon emissions," he said.

Novatek also signed a Memorandum of Cooperation with the Japanese Economy, Trade and Industry on ammonia, hydrogen and carbon capture, utilization and storage.

The parties to the memorandum intend to mutually support projects for the production and marketing of ammonia and hydrogen, as well as implementing technologies for carbon capture and storage in Russia and Japan. In particular, the Memorandum provides for the exchange of information and research in these areas, as well as implementing pilot projects and providing state support for developing policies in the field of decarbonization, standards and requirements for low-carbon products.

"One of the most important elements of our strategy is to reduce our carbon footprint, which allows us to increase the competitiveness and market attractiveness of the company's products in the context of the energy transition," Novatek's Mikhelson said.

"The Memorandum expands inter-governmental support for our climate projects that is of great importance for the successful implementation of Novatek's strategic plans to further increase LNG production while correspondingly reducing our carbon footprint. The Memorandum also contributes to strengthening the economic ties between Russia and Japan," he said.