Russia plans to enter global hydrogen market

Significance

Interest in hydrogen stems mainly from a recognition that global markets and regulation will change, rather than domestic pressure for climate change mitigation. Natural gas producer Gazprom, liquified natural gas (LNG) specialist Novatek and government-controlled nuclear and hydroelectric companies Rosatom and Rusgidro are expected to play leading roles, but ambitions are modest.

Impacts

• Hydrogen development will be led by firms with interests in natural gas or electricity, both key inputs.
• The German-Russian Chamber of Commerce will push hydrogen development as a way of marrying bilateral expertise and capacity.
• There is talk of using the Nord Stream 2 pipeline to carry a hydrogen-methane mix, or even of a dedicated third pipeline.