Moscow approves hydrogen industry concept

The Russian government has approved the concept of hydrogen energy development, which should eventually allow the country to produce and export hydrogen and to use it in various sectors of the domestic economy.

The concept identifies goals, strategic initiatives and measures needed to establish an industry, prime minister Mikhail Mishustin said today.

"The development of hydrogen energy will reduce the risks of losing energy markets, support economic growth through the establishment of new industries and the creation of high-tech jobs, export of products and technologies," Mishustin said.

Moscow said earlier this year that it wants a 20pc share of a global hydrogen market. Last month the government established a working group of industrial firms and ministries to design and implement a plan to achieve this.

Under an initial three-and-a-half year phase the government wants to have pilot projects launched for production of low-carbon hydrogen, consortiums established of equipment and component manufacturers and infrastructure created for storage and transportation of hydrogen created.

This phase envisages the creation of three hydrogen clusters, focusing on the implementation of pilot projects for production and export. One will be in northwest Russia, which will focus on future hydrogen exports to Europe and on development of measures to reduce the carbon footprints of export-orientated enterprises; an eastern cluster will focus on exports to Asia-Pacific and on development of infrastructure in the transport and energy sectors; and an Arctic cluster will look to provide low-carbon power to Russia's vast territories in the far north.

The government plans to offer incentives such as access to special investment contracts and state subsidies to help cover the costs of the pilot projects and of the necessary scientific research.

Most of Russia's top energy firms, including Gazprom, Gazpromneft, Novatek, Rosneft and Lukoil have said that they will be ready to participate in hydrogen projects, although the latter expressed doubts that such projects will be commercially-viable.

By Oksana Yablokova