Naftogaz will seek potential partners to implement hydrogen projects and share experience with other members of the alliance, as Naftogaz has ambitions to become a national leader in hydrogen production for export to EU countries.
The EU has declared its intention to achieve climate neutrality on the European continent by 2050. EU officials anticipate that green hydrogen will play a key role in decarbonising a number of sectors of the European economy. It is worth noting that Ukraine has been identified as a priority partner for the EU in the implementation of the European Hydrogen Strategy, which is a part of the European Green Deal, and in the supply of the latest energy resources to the European market.
Therefore, Naftogaz is actively developing options to transform into a model based on low-carbon businesses and provide additional profits for the national company. Today, a new hydrogen market is just shaping up with supply and demand being calculated. In the meantime, the EU is already drafting hydrogen regulations, the necessary infrastructure is being built, and the search continues for technological solutions for production at viable profit margins.
We recall that Naftogaz signed a memorandum of cooperation with the German energy company RWE in August this year. The companies are jointly working on green hydrogen production projects for export to Germany. To implement these projects, Naftogaz intends to use renewable energy sources. The company plans to build at least 1 GW of green capacity by 2030 to both cover its own electricity needs and to market it, as well as to further use it in the implementation of hydrogen projects.
In November this year, Naftogaz of Ukraine and Ukraine's gas storage operator Ukrtransgaz joined the H2EU+Store initiative, which envisages the production of green hydrogen from renewable energy sources in western Ukraine with an option to store in Ukrainian gas storage facilities. This will enable further export via gas pipelines, injections into the underground storage facilities in Austria, and sales to consumers in Central Europe.