At the Eastern Economic Forum held in Vladivostok, Russia’s independent gas major Novatek signed a Memorandum of Cooperation on ammonia, hydrogen and carbon capture, utilization and storage with the Ministry of Economy, Trade and Industry of Japan. The document was signed in the presence of the Minister of Energy of the Russian Federation Nikolai Shulginov and the Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama.
Under the Memorandum, the parties intend to mutually support projects in producing 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, Novatek said in a statement.
“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,” Leonid Mikhelson, NOVATEK’s Chairman of the Management Board, commented. “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.”
On the same day, Novatek signed a Strategic Cooperation Agreement on low-carbon projects with the Japan Bank for International Cooperation (JBIC). 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,” Leonid Mikhelson said. “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.”