MOSCOW (MRC) -- Novatek and Uniper signed a term sheet on the long-term supply of large volumes of low-carbon ammonia, said the company.
These supplies will be delivered to Uniper’s markets in Germany and North-West Europe. Novatek is developing a major low-carbon ammonia production facility on the Yamal Peninsula in northwestern Siberia, making use of the vast local gas reserves. Carbon dioxide formed during the natural gas-to-hydrogen production process will be captured and stored using a highly efficient underground storage infrastructure (CCS).
Uniper is planning an ammonia import terminal in Wilhelmshaven which will be equipped with a storage facility and a cracker operating with green power. The imported low-carbon ammonia can thus be transformed into gaseous hydrogen – and it will be fed into the future German hydrogen pipeline system. Low-carbon ammonia can also be supplied directly as a feedstock and as a fuel. Modern technology, beneficial geologic parameters and highly optimized production and logistics will help drive the carbon footprint of the supplied ammonia well below the threshold of the EU Taxonomy.
Klaus-Dieter Maubach, CEO of Uniper: "This project would cover a significant share of the low carbon hydrogen demand in Germany. Uniper is committed to reaching carbon neutrality in its European Generation business by 2035. Decarbonized and low-carbon gases such as hydrogen will play a major role in achieving these goals. Germany, like many other heavily industrialized countries, will rely on hydrogen imports, as the demand for hydrogen will exceed domestic production capacities. Hence, we actively set up global collaborations and partnerships and plan Wilhelmshaven as a major hydrogen hub. I firmly believe that Novatek, which has already developed a state-of-the-art LNG facility on Yamal, will deliver one of the world’s most efficient and cleanest ammonia export projects providing Europe with ammonia and hydrogen featuring a carbon footprint below the EU Taxonomy threshold."
As per MRC, in January2021, Uniper and Novatek signed a MoU to jointly investigate the potential for Novatek supply Blue and Green Hydrogen to Uniper’s power stations and markets in Russia and North West Europe. Blue Hydrogen can be produced from natural gas, accompanied with the CO2 capture and storage in geological underground formations, while Green Hydrogen is produced by using renewable energy.
Gazprom, NOVATEK and SIBUR have found an alternative route for the supply of condensate for processing from the fields of the monopoly in the Nadym-Pur-Taz region. Gazprom, forced to reduce production after the accident at the condensate preparation plant in Urengoy, agreed to redirect 85 thousand tons of raw materials per month to the Purovsky plant of NOVATEK.
Uniper is a leading international energy company, has around 12,000 employees, and operates in more than 40 countries. The company plans for its power generation business in Europe to be carbon-neutral by 2035. Uniper’s roughly 35 GW of installed generation capacity make it one of the world‘s largest electricity producers.