Novatek and RWE sign MOU to trade hydrogen

Novatek and RWE sign MOU to trade hydrogen

Novatek and RWE sign MOU to trade hydrogen 150 150 Energy Storage Journal

December 9, 2021: German energy company RWE’s trading arm on December 7 signed an agreement with Russian natural gas producer Novatek to trade hydrogen between Russia and Europe.

The memorandum of understanding says Novatek will carry out a study for blue ammonia and hydrogen production in the Yamal region of Russia, including carbon capture and storage.

The fuel produced will go to RWE and its customers in Europe.

Javier Moret, global head of Liquefied Natural Gas with RWE Supply & Trading, said that while renewables needed to be rapidly expanded, flexible generation as back-up was also essential to guarantee security of supply.

“Until that point is reached, bridge solutions such as gas, LNG and blue hydrogen will be needed,” he said.

To that end, the companies have also stated their intention to work together to supply LNG and if possible, ‘carbon neutral’ LNG.

“The trend towards greater transparency on greenhouse gas emissions is supported by both companies and marks an important first step towards the potential use of carbon credits to offset any remaining emissions,” the companies said.