Russian Steel Makers Embark on Green Steel Journey
Following a flurry of announcements by European steel makers, power producers & hydrogen producers since 2020 beginning, Russian steel makers
Following a flurry of announcements by European steel makers, power producers & hydrogen producers since 2020 beginning, Russian steel makers and Gas & Oil giants have signed several agreements to implement green steel making at XXIV St Petersburg International Economic Forum last week. The signed agreement will be implemented using the SPIC 2.0 mechanism
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.
Metalloinvest, Russia’s State Atomic Energy Corporation Rosatom’s JSC Rusatom Overseas and leading producer of industrial gases Air Liquide signed a memorandum of understanding to study the possibility of organizing low carbon production of hydrogen. As part of the joint work, the parties plan to evaluate the technical and commercial aspects of a potential project for the production of environmentally friendly hydrogen for Metalloinvest factories located in Belgorod and Kursk regions. Electrolysis of water using low carbon electricity for yellow & green hydrogen and steam reforming of methane in combination with carbon capture technologies for blue hydrogen are considered as possible means for hydrogen production.
NOVATEK and Severstal signed a Memorandum of Understanding on cooperation in the field of alternative and hydrogen energy to reduce greenhouse gas emissions. The MOU provides for the implementation of a joint pilot project to produce blue hydrogen from natural gas and by using technologies for carbon capture and storage. The parties intend to jointly develop technical requirements, standards and engineering solutions for the manufacturing and supply of hydrogen transport pipelines, turbines, hydrogen storage systems and hydrogen transport tanks. Furthermore, the Parties also agreed to cooperate in the production and supply of hydrogen, development of technological solutions for the use of fuel types based on hydrogen and its carriers, specifically ammonia.
Ecolant signed a special 20 year investment contract for the construction in Vyksa of the Nizhny Novgorod region. Ecolant is a metallurgical complex without coke-chemical and blast-furnace converters. The steel will be produced from iron ore and natural gas using the Direct Reduced Iron method. The project is a single ore steel production chain consisting of DRI, an electrometallurgical furnace and a secondary processing complex with a capacity of 1.8 million tonnes of steel per year and two continuous casting machines.
Magnitogorsk Iron & Steel Works and the energy group Fortum signed a Memorandum of Cooperation in the field of renewable energy. The agreement formalises MMK's intention to use green energy produced by Fortum Russia and its joint ventures at their wind and solar power plants. Fortum has the largest wind and solar portfolio in Russia, either directly or through joint ventures, with more than 2GW of capacity. The use of electricity from clean and renewable sources in production processes will enable MMK to reduce the carbon footprint of its products.
NOVATEK and a subsidiary of TotalEnergies SE signed a Memorandum of Understanding on decarbonization, hydrogen and renewables. The Parties intend to cooperate on reducing greenhouse gas emission at joint projects by implementing carbon capture and storage technologies and utilizing renewable energy sources at joint LNG projects. In addition, the MOU considers the production and usage of hydrogen as a low-carbon fuel, as well as the marketing of carbon-neutral products including LNG.
Special Investment Contract 2.0, SPIC 2.0, is an instrument of industrial policy aimed at stimulating investment in industrial production in Russia. Its essence lies in the fact that the state undertakes to stimulate activities in the spheres of industry, determined by the decree of the Government of the Russian Federation, and the investor, in turn, to implement the project using modern technologies in order to increase the competitiveness of products in world markets.