Rusatom Overseas joins project for low carbon hydrogen production

9 June 2021

Rusatom Overseas (part of Rosatom) on 4 June signed a memorandum of understanding, during the 24th St Petersburg International Economic Forum with Metalloinvest and Air Liquide to evaluate a joint project in low carbon hydrogen production.

Metalloinvest is a leading global manufacturer and supplier of iron ore products and hot briquetted iron and a regional producer of high-quality steel, and Air Liquide is a leading producer of industrial gases.

The three companies plan to evaluate the technical and commercial aspects of a potential project for the production of environmentally friendly hydrogen for Metalloinvest factories located in Belgorod and Kursk regions.

Electrolysis of water using low-carbon electricity ("yellow" hydrogen produced using nuclear generation and/or "green" hydrogen produced using renewables) and steam reforming of methane in combination with carbon capture technologies ("blue" hydrogen) will be considered as possible means for hydrogen production. In the long term, Metalloinvest plans to completely switch to the use of hydrogen in metallisation plants, and by 2025 sets the goal of reducing its own CO2-equivalent emissions by 6%. In 15 years, the holding's emissions can be reduced by 77%.

“Together with our colleagues, we plan to work out the most cost-effective possible models for organising the production of low-carbon hydrogen for the needs of Metalloinvest enterprises, estimate capital costs and make a preliminary estimate of the cost of hydrogen production and resources required to convert the holding's enterprises to low-carbon hydrogen,” said Rusatom Overseas President Evgeny Pakermanov. “The estimated volume of low-carbon hydrogen consumption by Metalloinvest enterprises may reach 150,000 tons a year.”

“This agreement is an important stage in the implementation of Metalloinvest's strategy aimed at reducing the carbon footprint of its products, Metalloinvest CEO Nazim Efendiev stressed. “Already today the Company has the opportunity to modernise equipment to use up to 30% hydrogen as a reducing gas. The new metallisation plant for Mikhailovsky HBI is being designed on the principle of carbon-free metallurgy - with the view to completely switching over to the use of hydrogen as a reducing agent. As part of the implementation of the Climate Strategy approved this year, we have begun a detailed development of Metalloinvest's Hydrogen Strategy, which foresees the production and introduction of hydrogen into the main production processes in order to achieve carbon neutrality."

Marilene Turcotte, General Manager, Air Liquide in Russia said decarbonising the industry is at the heart of Air Liquide’s strategy. “We are committed to providing our customers with innovative technologies, operational expertise and the drive to move industry forward towards a low-carbon future. Air Liquide is pleased to join forces with Metalloinvest and Rosatom to achieve such ambitious targets.”

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