A deal for what is believed to be the first Russian-German low-carbon ammonia supply chain has today (Dec 22) been inked – and plans state that 1.2 million tonnes of fuel is set to cover a significant share of hydrogen demand in Germany.

Russia’s Novatek has confirmed that it will produce the ammonia at its facility on the Yamal Peninsula, North-western Siberia. Although still under development, the site will make use of the vast local gas reserves.

To ensure the ammonia production is as environmentally friendly as possible, carbon dioxide formed during the natural gas-to-hydrogen production process will be captured and stored using a highly efficient underground storage infrastructure (CCS).

On the plant, Leonid Mikhelson, Chairman of Novatek’s Management Board, added, “Our strategy pays significant attention to clean energy supplies, and we consider ammonia as the most efficient hydrogen carrier for seaborne transportation.

“We are now at the pre-FEED stage for a low- carbon ammonia and hydrogen plant with CCS facilities and signing of term sheets for long- term supply demonstrates growing demand for low-carbon products, which is an essential precursor for the Final Investment Decision on this project.

“The plant will be located next to our LNG cluster in Yamal in order to minimiwe the infrastructure costs and provide the most competitive clean energy supplies to the global market”.

Once produced, the ammonia will then be shipped to Germany – and this is where Uniper comes in. A pioneer in green energies, and hydrogen in-particular, Uniper will welcome the deliver at an ammonia import terminal in Wilhelmshaven which will be equipped with a storage facility and a cracker operating with green power.

At the terminal, the imported ammonia can be transformed into hydrogen and used throughout the country. Already, Uniper has hinted at plans for the energy carrier to be fed into the future German hydrogen pipeline.

On the plans, Klaus-Dieter Maubach, CEO of Uniper, said, “This project would cover a significant share of the low carbon hydrogen demand in Germany. Uniper is committed to reaching carbon neutrality in its European Generation business by 2035. Decarbonised and low-carbon gases such as hydrogen will play a major role in achieving these goals.

“Germany, like many other heavily industrialised countries, will rely on hydrogen imports, as the demand for hydrogen will exceed domestic production capacities. Hence, we actively set up global collaborations and partnerships and plan Wilhelmshaven as a major hydrogen hub.

“I firmly believe that Novatek, which has already developed a state-of-the-art LNG facility on Yamal, will deliver one of the world’s most efficient and cleanest ammonia export projects providing Europe with ammonia and hydrogen featuring a carbon footprint below the EU Taxonomy threshold.”