Oil & Gas
Severstal & EVRAZ Sign Pact with Gazprom Neft for Decarbonisation
Russian steel makers Severstal & EVRAZ and Gazprom Neft have signed cooperation agreements on developing technologies to produce, transport,
Russian steel makers Severstal & EVRAZ and Gazprom Neft have signed cooperation agreements on developing technologies to produce, transport, store, and use hydrogen and reduce emissions of carbon dioxide. As part of the agreement, the oil company will be sharing separately with Severstal and Evraz its best practices in CO2 disposal. The companies plan to jointly seek opportunities and technologies for capturing and utilizing carbon dioxide, as well as using hydrogen in metallurgical production and developing materials for its transportation and storage. They may implement joint technological projects in the field of decarbonisation, including through the transfer of production from hydrocarbon fuel to methane-hydrogen mixtures.
Gazprom Neft’s Deputy Chairman Mr Vadim Yakovlev said “We routinely dispose of CO2 by pumping it back into oil and gas reservoirs as part of our operations; we have accumulated significant experience of such projects and we are ready to share this expertise with our partners and the market at large. According to the available expert opinions, pumping CO2 back into reservoirs is indispensable for delivering on the global CO2 emissions reduction targets. We want to pool our competencies with steelmakers to develop green industrial technologies.”
Since 2015, Serbia’s NIS, a joint venture of Gazprom Neft and the Republic of Serbia, has implemented a project on collection and purification of high-CO2 natural gas at a number of deposits. Extracted CO2 is pumped back into the developed reservoirs at a depth of over 2,500 metres.
Severstal has committed to the goal of reducing 3% CO2 emissions by 2023 from the 2020 base, and this year it has set up a team dedicated to working with hydrogen and innovative decarbonization projects.
Evraz targets emissions from steelmaking operations in Russia and North America of 1.6 million tonne of CO2 equivalent per ton of steel by 2030, about 20% down from 1.97 million tonne in 2019-20.