Novatek was the first in Russia to conclude an agreement on the export of hydrogen

Novatek was the first in Russia to conclude an agreement on the supply of hydrogen on an industrial scale. Fuel will be supplied from the Ob HCC project in Yamal. This became known on December 23, 2021.

According to Kommersant"," Novatek intends to supply up to 1.2 million tons of "blue" ammonia to the German company annually, Uniper other potential buyers of ammonia from the Russian company may also become the German RWE. the JapaneseMitsui

It is noted that the agreement with Uniper is not a firm contract, but is a legally binding document necessary for making a final investment decision on Ob HCC

Ammonia will be supplied to Germany by the Uniper import terminal in Wilhelmshaven. Imported low-carbon ammonia will be used as a hydrogen carrier, for which purpose it will be converted into hydrogen gas and sent to the planned hydrogen network of Germany, as well as supplied unchanged as an environmentally friendly raw material and as a fuel.

Novatek was the first in Russia to export hydrogen

According to the project, Ob HCC will produce 2.2 million tons of ammonia and 130 thousand tons of hydrogen per year. The launch of the first stage should be in 2026, the second will be launched in 2027.

The price will be tied to global gas indices, and will also take into account carbon-free fees. This year, the price of ammonia rose after the gas, from which it is mainly produced. According to Platts, as of December 15, 2021 ammonia prices reached $1 120 per ton on the basis of CFR Northwest Europe. Prices on the FOB Black Sea basis were $1 055 per ton.

Dmitry Akishin from Vygon Consulting in a conversation with the publication noted that the specific investments in blue ammonia (taking into account CO2 injection) and LNG are comparable and usually in the range of $800-1000 per ton.

He notes that the total number of contracts for low-carbon ammonia is difficult to estimate, since almost all of them relate to projects under design or construction. According to him, in 2019, about 180 million tons of ammonia were produced in the world, of which about 10% of the product participated in interregional trade.^[1]

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