Russia to Supply Blue Hydrogen from Arctic
Russian-based Novatek and German giant Uniper SE signed a term sheet on the long-term supply of large volumes of low-carbon ammonia conforming to the EU taxonomy. This 22 December, the two companies agreed on supplying 1.2 billion metric tonnes of blue ammonia per year to be produced at the planned Obskiy Gas Chemical Complex (GCC) project in the Arctic Russian region of Yamal.
According to Novatek, ammonia will be produced from natural gas delivered from the Obskiy Field. The project will include carbon capture and storage (CCS) facilities. The end product is expected to be classed as blue under the EU taxonomy. Ammonia will be imported to Uniper’s planned ammonia terminal in Wilhelmshaven equipped with an ammonia cracker operating with renewable power. Upon being transformed into gaseous hydrogen, it will be fed into the future German hydrogen pipeline.
Obskiy GCC’s output is expected to be around 2.2 million tonnes of ammonia and 130,000 tonnes of hydrogen per year, with about 4 million tonnes of CO2 being captured and stored. The CCS project to be implemented at Obskiy GCC may be integrated with the one planned to be installed at the Yamal LNG project to reduce expenses and increase environmental benefits. The launch of the facility’s first train is scheduled for 2026, with the second train to become operational by 2027.
Experts believe that more contracts are to follow. German-based RWE and Japan’s Mitsui have already expressed their interest in purchasing low-carbon fuels from Obskiy GCC.
Arctic Today is a column by PORA CEO Alexander Stotskiy analyzing major international, national and regional events and trends in the Arctic.
According to Novatek, ammonia will be produced from natural gas delivered from the Obskiy Field. The project will include carbon capture and storage (CCS) facilities. The end product is expected to be classed as blue under the EU taxonomy. Ammonia will be imported to Uniper’s planned ammonia terminal in Wilhelmshaven equipped with an ammonia cracker operating with renewable power. Upon being transformed into gaseous hydrogen, it will be fed into the future German hydrogen pipeline.
Obskiy GCC’s output is expected to be around 2.2 million tonnes of ammonia and 130,000 tonnes of hydrogen per year, with about 4 million tonnes of CO2 being captured and stored. The CCS project to be implemented at Obskiy GCC may be integrated with the one planned to be installed at the Yamal LNG project to reduce expenses and increase environmental benefits. The launch of the facility’s first train is scheduled for 2026, with the second train to become operational by 2027.
Experts believe that more contracts are to follow. German-based RWE and Japan’s Mitsui have already expressed their interest in purchasing low-carbon fuels from Obskiy GCC.
Arctic Today is a column by PORA CEO Alexander Stotskiy analyzing major international, national and regional events and trends in the Arctic.
27 December 2021
