Russian steel company signs decarbonisation deals

Severstal, a leading integrated steel and mining company based in Russia, has signed deals with Novatek and Gazprom Neft in a bid to cut its greenhouse gas (GHG) emissions.

The company has signed a memorandum of cooperation with Novatek under which the two companies will develop hydrogen, alternative energy and GHG emissions reduction technologies, including a joint pilot project for the production of blue hydrogen from natural gas using carbon capture and storage (CCS) technology.

Both companies have also agreed to partner on the production and supply of hydrogen and the development of technological solutions for the use of fuels based on hydrogen and its carriers, including ammonia.

Severstal has also signed a memorandum of understanding (MoU) and cooperation agreement with Gazprom Neft to collaborate on the development of technologies and materials for the production, transportation, storage and use of hydrogen.

Severstal ranks 11^th among global steel companies in terms of GHG emissions, according to the World Steel Association. The company has set itself a target to reduce its emissions by 3% by 2023 (from 2020 levels). In 2021, Severstal established a corporate division focused on the use of hydrogen and developing innovative decarbonisation projects, including carbon capture and disposal, and CO₂ offsetting.

Alexander Shevelev, CEO of Severstal, comments: ‘Reducing our carbon footprint and combating climate change will be a significant theme in the coming decades and is one of the long-term priorities of Severstal's sustainable development programme. It should be noted that we see not just challenges and risks, but also huge opportunities in this field. Technologies and projects for the capture and disposal of CO₂ and the production of hydrogen will continue to grow rapidly in the Russian Federation and globally over the next decade, and this will open up a great opportunity for us to capitalise on.’