Russian PM Mr Mikhail Mishustin Approves Hydrogen Plans

The Russian government has approved a framework to explore the production and export of hydrogen to Asia and Europe within four years, but high production costs and limited availability of renewables could be limiting factors. The concept for the development of a hydrogen industry was approved by Russian Prime Minister Mr Mikhail Mishustin. Russian sources estimate the state is targeting exports of hydrogen starting with 1 million tonne per year of hydrogen by 2024 and 7 million tonne per year by 2035 with a longer-term vision of exporting 33 million tonne per year by 2050.

At present, there is no clarity on the preferred technology for producing hydrogen, but initially Russian producers are likely to produce ‘blue’ hydrogen, which is produced via natural gas with carbon capture and storage technology dealing with the resulting carbon.

Russian President Mr Putin special representative Mr Anatoly Chubais told Russian media late last month.

⦁ In order to meet its hydrogen target the state has created a working group of public and private companies. The privately owned companies include gas majors Novatek, Gazprom, petrochemicals producer Sibur, investment company Sistema and others.

⦁ There are also talks of working on projects jointly with companies from Europe and Asia.

⦁ As per the government’s framework, initially, at least three production clusters will be created. The cluster in the northwest of Russia will specialise in the export of hydrogen to European countries.

⦁ Vostochny will supply hydrogen to Asia, as well as develop hydrogen infrastructure in the transport and energy sectors. The Arctic cluster is tasked with providing low-carbon electricity supply to the Russian Arctic

Last year, Russia’s energy mix was heavily skewed towards natural gas, coal and oil with market shares of 52%, 23% and 12% respectively. Hydro was at only 7%.