08 Jun 2021

Metalloinvest, Rosatom and Air Liquide Agree to Prepare Joint Low-Carbon Hydrogen Production Project

08 Jun 2021  by Rosatom   
Metalloinvest, one of the world’s leading iron ore and hot briquetted iron (HBI) manufacturers and suppliers and a producer of high-quality steel, signed a Memorandum of Understanding with Rosatom subsidiary Rusatom Overseas JSC and Air Liquide, one of the leading producers of industrial gases, aiming to explore the possibility of launching the joint production of low-carbon hydrogen.

Metalloinvest Director General Nazim Efendiev, Rusatom Overseas JSC President Evgeny Pakermanov and Air Liquide Russia Director General Marilene Turcotte signed the document on the sidelines of the St. Petersburg International Economic Forum.

The parties intend to evaluate the technical and commercial aspects of a potential project to produce environmentally friendly hydrogen for Metalloinvest enterprises based in Russia’s Belgorod and Kursk regions. Possible methods for producing hydrogen include splitting water by electrolysis using low-carbon electricity (“yellow” and / or “green” hydrogen) and Steam Methane Reforming (SMR), in combination with carbon dioxide capture and storage (“blue” hydrogen).

“This agreement is an important step in the implementation of Metalloinvest’s carbon footprint reduction strategy in its production [operations],” said Nazim Efendiev. “The company already has the means to modernise its equipment to [create] reducing gases [with up to] 30 percent hydrogen. The new metallisation [method] for Mikhailovsky HBI [will be] based on principles of carbon-free metallurgy, with the prospect of a complete transition to the use of hydrogen as a reducing agent. As part of the implementation of our Climate Strategy, [which was] approved this year, [Metalloinvest] has begun to develop a meticulous Hydrogen Strategy, which entails the production and use of hydrogen in main production processes to achieve carbon neutrality.”

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

“Eliminating CO2 emissions from the industry is at the heart of Air Liquide’s strategy and we are dedicated to providing our industrial customers with innovative technologies, to impart operational skills, and to support them in their quest for a low-carbon future. Air Liquide is pleased to join forces with Metalloinvest and Rosatom to achieve these ambitious goals [and] contribute to the future of the steel industry, bringing to this collaboration the unique knowledge it gained over more than 50 years of experience [working] in hydrogen technology,” said Marilene Turcotte, Director General of Air Liquide, Russia.

Metalloinvest plans to switch to using hydrogen in metallisation processes in the long-term completely and has set a goal to reduce its own CO2-equivalent emissions by 6 percent by 2025. In 15 years, the holding’s CO2 emissions are expected to be reduced by 77 percent.

Notes to the editor:

Metalloinvest is one of the world’s leading manufacturers and suppliers of iron ore products and hot briquetted iron (HBI) and a regional producer of high-quality steel in Russia. The company has the world’s second largest proven reserves of iron ore and one of the lowest iron ore production costs. 100% of Metalloinvest’s shares are controlled by USM Holdings LLC, whose majority shareholder is Alisher Usmanov, with a 49% stake.

JSC Rusatom Overseas (JSC RAOS) is a Rosatom subsidiary responsible for promoting integrated projects on the construction of NPPs and Nuclear Science and Technology Centres in markets outside of Russia, as well as for developing promising business areas for Rosatom. Rusatom Overseas has been appointed the industry integrator for the hydrogen energy sector. Today, JSC RAOS is focused on planning and implementing pilot projects in Russia and abroad; developing its own technologies for the production, storage, and transport of hydrogen; and forming long-term strategic and technological partnerships in this area.

Air Liquide is a world leader in the production of gases, in technology development, and in providing services for industry and healthcare. Providing services to more than 3.8 million customers and patients, Air Liquide has representative offices in 78 countries and about 64,500 employees, with revenues amounting to more than €20 billion in 2020. Air Liquide shares are traded on the Paris Stock Exchange (section A). The company is included in the CAC 40, EURO STOXX 50, and FTSE4Good indices. Air Liquide, Russia currently has 18 production sites in key regions, employing over 600 employees responsible for providing products and services to over 1,700 consumers.

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