Japan and Russia Eye Clean Energy

Akihabara News (Tokyo) — The Ministry of Economy, Trade and Industry (METI) and the Japan Bank for International Cooperation (JBIC) have agreed to work with Russia’s largest independent natural gas producer, PAO Novatek, on developing low-carbon energy projects.

The agreement was announced during the Eastern Economic Forum in Vladivostok on September 2.

The pact specifically outlines collaboration on initiatives concerning blue ammonia, hydrogen, and carbon capture, utilization, and storage.

According to Novatek, the parties will “mutually support projects in producing and marketing of ammonia and hydrogen, as well as implementing technologies for carbon capture and storage in Russia and Japan.”

Novatek CEO Leonid Mikhelson commented, “One of the most important elements of our strategy is to reduce our carbon footprint.”

Novatek plans to do so through increasing gas sales as a “part of the future energy mix” as opposed to a “transition fuel.”

The collaboration will facilitate opportunities for Novatek to market clean fuel products to Japanese consumers with the aim of reducing total carbon emissions, as well as to attract investments from Japanese companies and financial institutions.

In July 2020, Japan received a shipment of liquefied natural gas (LNG) from Novatek under a spot contract, part of its Yamal LNG project. The recent collaboration secures future ventures in LNG and other low-carbon initiatives.

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