Russian independent gas producer Novatek has signed a deal with the Japanese government to work together on the production and distribution of ammonia and hydrogen.

The two organisations will also collaborate on the development of blue hydrogen and carbon capture, utilisation and storage (CCUS) technologies. They will then look to jointly implement pilot projects and develop standards and requirements in these areas.

“The memorandum expands intergovernmental support for our climate projects that is of great importance for the successful implementation of Novatek’s strategic plans to further increase LNG production while correspondingly reducing our carbon footprint,” says Novatek chairman Leonid Mikhelson.

“The memorandum expands intergovernmental support for our climate projects” Mikhelson, Novatek

The deal was signed at the Eastern Economic Forum in Vladivostok. Novatek also signed a deal at the event with the state-controlled Japan Bank for International Cooperation to develop low-carbon projects, including the use of hydrogen-based fuels at its LNG projects.

Steam methane reforming and CCUS technologies can be retrofitted to LNG production to enable blue hydrogen and ammonia production.

The Russian firm decided earlier this year to reconfigure its Obsky LNG project to produce ammonia, hydrogen and methanol.

Novatek is already delivering LNG to Japan from its Arctic LNG facility. The firm has incremental goals to reduce the carbon intensity of its LNG production but no overall target.

Novatek has also signed a deal with German utility Uniper to develop its hydrogen value chain.

Japan has more than a hundred hydrogen refuelling stations and is looking to increase imports of the fuel for power generation. The government and utilities are looking to develop a hydrogen value chain across Asia and Australia.

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Author: Tom Young