Russia is preparing for the future of hydrogen energy

A week before the Russian government adopted the concept for the development of hydrogen energy on 9 August, the head of the Gazprom Exports department, Sergei Komlev, clarified that Russia would maintain its export position in the European market by using blue hydrogen deliveries. Recognizing the economic impact of the European policy on carbon neutrality, which will inevitably affect future natural gas demand, Russia has begun work on developing a hydrogen energy strategy that will address the future needs of global energy markets. will complete. The concept of hydrogen energy development is thus a welcome addition to Russia’s energy strategy adopted in 2020, which has made Russia a world leader in hydrogen production and exports by 2024 by achieving export targets of 0.2 million tonnes and 2 million tonnes. declared the goal. by 2030.

However, as it currently stands, the development of hydrogen energy is largely influenced by the dynamic implementation of hydrogen strategies adopted in potential export markets, particularly in Europe and East Asia, then prompting the Russian government to transform its energy sector. or address national climate issues. The concept of hydrogen energy development is rooted in this connection as it serves the development of at least three regional production clusters: the Eastern Cluster in the Sakhalin region focused on hydrogen exports to the Asia-Pacific region; North-Western cluster in St. Petersburg and Leningrad region to export hydrogen to European countries; and the Arctic cluster in the Yamalo-Nenets Autonomous District to develop autonomous hydrogen power supply.

Russia’s hydrogen energy roadmap prioritizes the development of production capacity in yellow and blue hydrogen. The yellow and blue colors simply represent how hydrogen is made using common extraction methods. Hydrogen on Earth does not appear to be pure in nature which means that it requires energy and method to extract it. For example, one of the most commonly used methods for hydrogen extraction, which accounts for 96% of total hydrogen production worldwide, uses fossil fuels to make hydrogen in a process called steam-methane reformation. The reforming method uses high-temperature steam between 700–1000 °C to produce hydrogen from a methane source, usually natural gas. The production of hydrogen by this method is called gray hydrogen. Similarly, when hydrogen is produced using lignite coal, it is called brown hydrogen and bituminous coal-black hydrogen.

The downside of all these methods is that they are both energy-intensive and harmful to the environment as they emit huge amounts of carbon dioxide. Another effective or greener method of making hydrogen is through a process called electrolysis. In this process, electric current is used to split water into hydrogen and oxygen. If the electricity used in this process is generated from renewable sources such as solar or wind, hydrogen is labeled green because it does not emit any greenhouse gases. Similarly, if the electricity required is powered by nuclear power it is called pink hydrogen and if it is powered only through solar, it is called yellow hydrogen. Green hydrogen is a naturally eco-friendly option. However, the cost of production is very high, which makes it less competitive than currently produced gray hydrogen. Market experts predict that by 2030, with substantial improvements in large-scale electrolysis manufacturing and installation technologies, green hydrogen could be cost-effective—enough to compete with the pricing of gray hydrogen.

Until then, one solution that can be used is blue hydrogen, which is an integral part of Russia’s hydrogen energy roadmap. Blue hydrogen is produced in the same way as gray hydrogen using the steam methane reforming method. But unlike those methods, carbon dioxide is typically captured and stored underground, using a carbon capture utilization and storage process. Although this process is also expensive, it is still cheaper than green hydrogen and does not pollute the environment like gray hydrogen. Given its vast reserves of natural gas and experience using carbon capture and storage technology, Russia relies on blue hydrogen as its preferred energy for export. Furthermore, in relation to the demands of the European market, the EU’s hydrogen strategy calls for the production and consumption of not only green hydrogen, but also blue and brown in the near term, which will create export opportunities for Russia. .

Currently, Russia has relatively limited capabilities in hydrogen production, with annual production estimated at around 2-3.5 million tonnes. In the long run, it can significantly increase its production goals, no matter which method it chooses. One positive aspect of Russia’s electricity generation capacity is its low carbon footprint. The electricity generation sector is dominated by gas-fired heat and power stations, which account for 48% of the total electricity generation capacity, followed by nuclear power stations at 18% and hydroelectric power stations at 17%. This energy generation mix serves for Russia’s hydrogen future. Given its vast water resources and its potential to generate wind power, Russia can produce large amounts of green hydrogen to meet the future demands of energy markets. In addition, it is one of the world’s top producers of nuclear power with 38 operational nuclear plants, which could further contribute to the production of low-carbon hydrogen.

Russia’s preferred strategy for hydrogen production as described by Anatoly Chubais is to start with blue hydrogen – given its vast natural gas resources – and then gradually transition to green hydrogen once the market becomes competitive enough for its exports. Is. In other words, Russia does not intend to miss out on future energy markets and has begun planning to leverage resources to implement a long-term strategy for hydrogen production. With its substantial potential in renewable energy and its prime geographic location, Russia could act as a bridge between Asia and Europe once the market for hydrogen expands.

Triwun Sharma is a PhD student in International Relations, University of Warsaw, Poland.

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