Russia
ENERGY TRANSITION
The first steps
companies have also expressed interest in branching out into the sector. It has also been suggested that Russia could supply green hydrogen to Europe, produced from water Russia seems to be taking the first tentative steps towards the through electrolysis, with the process powered by renewable energy transition, with emphasis on opportunities in the energy. Alternatively, state nuclear hydrogen economy, writes Joseph Murphy. group Rosatom is preparing pilot projects to produce yellow hydrogen, also from water using ussia is looking to forge a key national strategies. If hydrogen electrolysis, but with the process role for itself in the energy lives up to expectations, it could transition, as decarbonisation potentially seize market share away powered by atomic energy. The next question is how efforts gain momentum in some from natural gas. This is a source of Russia will send its hydrogen to of the largest markets for its oil unease for Russia, which provides foreign markets. The country is and gas. The country is the biggest over a third of Europe’s gas. well connected with the European oil and gas supplier to Europe, To hedge against this threat, gas market via pipelines, giving it and also claims a major stake in Russia is looking to supply a clear advantage as a supplier. It many of the fast-growing energy hydrogen of its own. Russia is also now linked to the Chinese markets in Asia. But some of its estimates it could obtain a 20–25% market via the Power of Siberia line, biggest customers are now taking share of global hydrogen trading launched in late 2019. Hydrogen meaningful strides towards by 2035, according to Deputy could be blended into the natural decarbonisation, and this has Energy Minister Pavel Sorokin at a gas flowing through these pipelines. caused Moscow no small amount of government meeting in mid-April, Gazprom’s older export routes concern. equating to somewhere between could only handle small amounts of Russia continues to rely on 1–7mn tonnes of annual supply. hydrogen, although newer pipelines oil and gas for a sizeable chunk Russia is hoping to leverage such as Nord Stream 2 (see Box), of its export revenues. While the its close proximity to hydrogen Turk Stream and Power of Siberia to government does not envisage any markets in Europe, and also Asia, China, could carry a blend of up to significant changes to the country’s to make its hydrogen competitive. 70% hydrogen and 30% natural gas, energy mix in the years to come, It could produce the fuel in several according to government estimates. it is exploring ways of benefitting ways, although it is likely that the This is assuming the hydrogen is from the energy transition taking majority will be derived from the produced in Russia. Alternatively, place overseas. country’s abundant natural gas Russia could continue flowing gas reserves. to Europe and then convert it into Hydrogen focus Hydrogen is classified as blue hydrogen at plants located locally. Hydrogen is touted by many as the when it is produced from natural Russia’s biggest gas customer is solution for decarbonising areas gas using methane reforming, The Russian and German Germany and the two countries are of industry that would be difficult with CO2 emissions from the governments signed a joint to make green and clean with process captured and safely stored. eager to progress their relationship declaration of intent to co-operate in the field of into hydrogen. The German and renewable energy alone. Indeed, Hydrogen can also be separated sustainable energy on Russian governments signed a joint from methane using pyrolysis, 20 April 2021, with hydrogen Russia is eager to position itself as declaration of intent to co-operate which creates solid carbon as a listed as one of the key areas a major supplier of the fuel in the of focus. Germany remains a in the field of sustainable energy on future. by-product, in which case it is strong supporter of the Nord 20 April 2021, with hydrogen listed The European Commission classified as turquoise. Pyrolysis Stream 2 pipeline, which as one of the key areas of focus. unveiled its long-awaited EU is currently only used on a very could serve as a vital link between Russian hydrogen Russia’s government has hydrogen strategy last year, small scale, however. supply and the European proposed establishing four main leading to a flurry of investment Gazprom has invested in blue market. hubs for hydrogen production. Hubs announcements. Many EU and turquoise hydrogen research, Photo: Nord Stream 2/Igor in the north-west Leningrad region members have also published and other Russian oil and gas Kuznetsov
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14 Petroleum Review | June 2021
