RWE and Novatek have signed an MOU to cooperate on supply of low-carbon and carbon-free fuels. The MOU envisages the supply of low-carbon ammonia and hydrogen by Novatek to RWE. Novatek is conducting a pre-FEED study for blue ammonia and hydrogen production in the Yamal region, which will include CCS facilities. The fuel is to be produced at Novateks’s planned Obskiy Gas Chemical Complex project and will be delivered to RWE and its customers in Germany and other European markets.

The partners also intend to extend their cooperation in supply of LNG, including possible carbon-neutral LNG. The trend towards greater transparency on GHG emissions is supported by both companies and marks an important first step towards the potential use of carbon credits to offset any remaining emissions.

"Europe has set ambitious climate targets. To achieve them, renewables must be expanded massively and quickly. At the same time, however, we need a flexible generation as a back-up to guarantee security of supply," said Javier Moret, Global Head of LNG at RWE Supply & Trading emphasises. "The ultimate goal is for plants powered by green energy sources to take over this task, such as gas-fired power plants fueled by green hydrogen. But until that point is reached, bridge solutions such as gas, LNG and blue hydrogen will be needed. We are therefore very pleased to be working with Novatek to evaluate possibilities to supply Europe with large quantities of blue and green hydrogen."

With its investment and growth strategy ‘Growing Green’ RWE wants to invest €50 B gross through to 2030 to grow its green and flexible generation portfolio. Thanks to an installed capacity of 14 GW, RWE is currently operating the second-largest gas-fired power station fleet in Europe.

In the context of ‘Growing Green’, additional plants, which will have a clear decarbonization roadmap, are planned and a roadmap for “green conversion” will be developed for all existing gas-fired power stations. RWE will also significantly expand its trading in green energy sources and its range of tailored energy solutions for large customers. RWE plans therefore to open up new business opportunities in the areas of hydrogen and ammonia importing, in order to supply industry in Europe.