Russia/Germany – RWE and Novatek have signed an MOU to collaborate on the supply of low-carbon and carbon-free fuels. The agreement calls for Novatek to supply RWE with low-carbon ammonia and hydrogen.
Novatek, Russia’s largest independent natural gas producer, is conducting a pre-FEED (Front End Engineering Design) study in the Yamal region for blue ammonia and hydrogen production, which will include carbon capture and storage (CCS) facilities. The fuel will be manufactured at Novateks’ proposed Obskiy Gas Chemical Complex and delivered to RWE and its customers in Germany and other European markets.
The partners also intend to expand their collaboration in the supply of liquefied natural gas (LNG), potentially including carbon-neutral LNG. Both companies support the trend toward greater transparency in greenhouse gas emissions, which is an important first step toward the potential use of carbon credits to offset any remaining emissions.
RWE’s ‘Growing Green’ investment and growth strategy aims to invest €50 billion gross by 2030 in order to expand its green and flexible generation portfolio. RWE currently operates Europe’s second-largest gas-fired power station fleet, with 14 gigatonnes (GW) of installed capacity.
Additional plants with a clear decarbonization roadmap are planned in the context of ‘Growing Green,’ and a roadmap for “green conversion” for all existing gas-fired power stations will be developed. RWE will also significantly expand its green energy trading and its portfolio of tailored energy solutions for large customers. In order to supply industry in Europe, RWE intends to open up new business opportunities in the areas of hydrogen and ammonia importation.