Tuesday, July 28, 2020

Nord Stream 2: Russia anticipates possible shift of E.U. countries to hydrogen

As countries of the bloc map out ways to disengage from climate-damaging fuels the plans point towards hydrogen. Russia, the market leader for oil and gas in Europe, anticipates this shift away from natural gas and reshuffles its production capacities. Gazprom will have to reflect the further use of the Nord Stream pipelines. Especially Nord Stream 2 coud turn out a major failed investment, writes german newspaper "Handelsblatt":

"According to Yuri Melnikow, senior analyst for energy issues at the Skolkowo University of Applied Sciences, hydrogen should be produced close to the sales markets. For Gazprom, this is primarily the European market. The company is currently exploring projects within the EU. Another option is hydrogen transport via the gas pipelines.
Otherwise, if the Europeans switch to hydrogen on a massive scale, Russia must fear that the pipelines will be shut down. The 8.5 billion euro Nord Stream 2, which is still under construction, will pay off after ten years at full capacity. If hydrogen production in Europe massively reduces gas imports, Nord Stream 2 threatens to become an investment ruin.
Gazprom is therefore considering sending at least one gas mixture mixed with hydrogen through the pipelines. In old pipelines, 20 percent of hydrogen could be added to natural gas, in new pipelines such as Nord Stream, the share could even be up to 70 percent, Gazprom estimates."

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