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MIL OSI Translation. Region: Russian Federation –

Mikhail Mishustin: Good afternoon, dear colleagues!

Today we have gathered to discuss the prospects for the development of hydrogen energy in our country.

These days, Russia is hosting the Energy Week, in which the President of the Russian Federation took part in the plenary session, where he discussed in great detail the topics of the international climate agenda with the expert community and leaders of the largest energy companies.

The head of state stressed the importance of achieving a balance in the energy market. First of all, to ensure global energy and environmental security. And he drew particular attention to the need to learn a lesson from the current situation in the European market.

Many states are now focusing their efforts on slowing down the global warming process, reducing the level of greenhouse gas emissions, as well as looking for alternative energy sources.

More than 60 countries have already announced their intention to move towards carbon neutrality. This will inevitably lead to a change in the structure of energy consumption in the next three decades (this is about 25 years). This state of affairs is a serious challenge. But at the same time, this also opens up great opportunities for our country. This is an incentive for the application of breakthrough technologies in the backbone sectors of the economy, the formation of new growth points, high-tech jobs and additional competitive advantages in the context of the global energy transition.

A promising direction in this area is the development of hydrogen energy. Hydrogen can be obtained from a variety of sources. It is applicable in many sectors of the economy – in industry, energy, transport.

Russia possesses large reserves of hydrocarbon resources, especially natural gas, as well as potential in nuclear energy and renewable energy sources. And it is important to use these advantages at the initial stage of the formation of our own technological competencies in the field of hydrogen energy.

Just two days ago, as part of the Russian Energy Week, the Government and Gazprom signed an agreement on the development of hydrogen energy and decarbonization of industry and transport based on natural gas.

Of course, the development of this industry will require the attraction of additional resources – both financial and intellectual. Our country has a serious scientific base, the expansion of which will make it possible to carry out fundamental and applied research for the development of technologies for obtaining pure and affordable hydrogen. And in the future, the cost of its production will be much lower.

Already today, large Russian mining and energy companies are actively exploring various possibilities for producing hydrogen, including from water using electricity from nuclear power plants and renewable energy sources.

More than 9 billion rubles are allocated for this direction within the framework of one of 42 initiatives of socio-economic development, which were supported by the President and which the Government approved last week. In the next three years, these funds will be directed, among other things, to the development of competitive domestic technologies for the production, transportation and storage of hydrogen, the creation of testing grounds for technologies for hydrogen energy, including in the Arctic zone.

To fulfill all the tasks set, the Government approved the Concept for the Development of Hydrogen Energy. It defines the goals, objectives and strategic initiatives, as well as key measures for the formation of this industry in the country in the medium and long term. And it will have to be carried out in several stages.

First of all, it is planned to create specialized clusters and implement pilot projects for the production and export of hydrogen. And also the use of energy carriers based on it within the country.

It is important to create large enterprises that will be able not only to meet domestic demand, but also to ensure supplies abroad. And the priority should be the transition to the serial application of hydrogen technologies in various sectors of our economy.

An interdepartmental working group has been set up to carry out tasks efficiently. It will coordinate joint efforts in developing not only strategic solutions, but also measures of state support for the development of hydrogen energy in the country. It is necessary to form a systematic approach to building up scientific and technological competencies.

And of course, the creation of a global market involves joint steps by states in the preparation of a unified classification of hydrogen, which, first of all, should include an assessment of the carbon footprint when using each of the available technologies for the production of this energy resource.

Colleagues, the development of hydrogen energy is a task set by the President.

Today we will discuss how to solve it. I would like to hear from you ideas and suggestions on what measures at the federal and regional levels are necessary for the formation of this industry to proceed systematically and in accordance with the goals that we face.

Alexander Novak: Dear Mikhail Vladimirovich! Dear Colleagues!

First of all, Mikhail Vladimirovich, I would like to thank you for your attention to this issue and for the strategic session that is being held today.

Many enthusiasts have been talking about the coming era of hydrogen for a long time. And now, indeed, hydrogen has become a topic of mainstream discussion. Among other things, it was discussed, as you have already said, at the Energy Week.

Hydrogen is considered today as one of the means of decarbonizing the world economy. And this is especially important given the goal that the President outlined: the transition of our country to carbon neutrality by 2060. Hydrogen is truly the most efficient way of storing energy and does not produce CO2 emissions. At the same time, hydrogen production is possible using any energy source. This is the sun, and the wind, and the atom, natural gas and coal.

Today, hydrogen is widely used in the chemical and oil refining industries, as well as in the production of fertilizers. In general, the production of hydrogen in the world is growing by about 3-4% per year. Currently, taking into account ammonia, 116 million tons are produced and consumed in the world.

But the world market for energetic hydrogen does not yet exist. Currently, there is no consensus among world experts about the potential volumes of the global hydrogen market – the range that is being considered and forecasted is quite wide. By 2050, it ranges from several tens of millions to almost 700 million tons per year.

As you have already noted, Mikhail Vladimirovich, the promising areas of hydrogen use are transport, housing and communal services and energy. In addition to what is used in industry and production, which I have already said.

Once a global hydrogen market emerges, it will compete with hydrocarbon markets. The answer to this challenge should be the integration of hydrogen technologies into the Russian energy strategy and the strategy of low-carbon development, which will be based on support for technological development and the creation of export-oriented hydrogen energy, the development of own demand for hydrogen energy carriers, as well as stimulation of investments in this industry.

Possession of the appropriate technologies, finished products and human resources will be a key element of success in achieving the goal of increasing Russia’s share in the global hydrogen market to at least 20%. This will make it possible in the future, while the role of hydrocarbons decreases, to ensure the diversification of our exports.

We have repeatedly discussed the development of hydrogen technologies as part of the preparation of social and economic initiatives of the Government.

I would also like to thank you, Mikhail Vladimirovich, for supporting the inclusion of the hydrogen technology development initiative in the list of government initiatives.

As you already said, the Government has approved the Concept for the Development of Hydrogen Energy. On October 1, 2021, under my leadership, the first meeting of the Interdepartmental Working Group on the development of hydrogen energy in the Russian Federation, approved by you, was held. Six subgroups have been created, including subgroups for the areas of technology development and, which is important, a group for creating a regulatory framework in the field of technical regulation. We talked about this as part of the preparation of the initiative, that today we have a completely zero level, namely, the development of a regulatory framework in technical regulation. Also, a scientific and technical council was created under the leadership of Vladimir Stefanovich Litvinenko, rector of the St. Petersburg Mining University.

It should be noted that Russia has significant scientific and technical groundwork in this area. Currently, more than 20 projects in the field of hydrogen technologies are already at various stages of implementation. Many research groups and companies are implementing projects in the field of hydrogen energy. The key ones are Gazprom, Rosatom, Novatek, Rusnano.

Within the framework of international cooperation, working groups for the development of hydrogen energy are being created with companies from various countries. Including already signed an agreement with the Federal Republic of Germany, on the way – with France, Australia and South Korea.

A project office for hydrogen technologies has also been set up. Within the framework of the project office, work was carried out to analyze existing technologies in the world and in Russia, and also analyzed the degree of readiness of these technologies – the so-called TRL.

Considering that the implementation of the project for the development of hydrogen technologies is of an interdepartmental nature, we have also created a project management system that will link the goals and objectives of the federal executive authorities, scientists and business and synchronize their efforts.

Dear Mikhail Vladimirovich, today we would like to report to you on the current status of this work, to discuss and approve the target indicators, to hear your assessment of the project management model, as well as to receive instructions from you on the implementation of the preparation of the hydrogen energy development program and the synchronization of all our strategic documents, which accepted today.

The Ministry of Energy will present the model in more detail, as well as our key companies: Rosatom, Rusnano, Gazprom.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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