Ukraine’s Naftogaz, RWE Sign Memo of Understanding on Hydrogen

(Bloomberg) --

NJSC Naftogaz of Ukraine and German energy trading company RWE Supply & Trading have signed a memorandum of understanding on hydrogen, according to a statement.

Both companies agree to “explore mutually beneficial cooperation opportunities along the full value chain of green hydrogen and its derivatives like ammonia produced in Ukraine,” according to the statement, which is dated Aug. 22.

This includes the development of green hydrogen and ammonia production and storage in Ukraine and its export to Germany. Furthermore, Naftogaz and RWE intend to jointly explore commercial opportunities for the sale of Ukrainian green hydrogen in European markets, with a focus on RWE’s core markets.

The announcement comes after the U.S. and Germany completed a deal in July approving completion of the Nord Stream 2 pipeline. The two countries also agreed to seek to promote investments of at least $1 billion in a so-called Green Fund to help Ukraine’s transition to cleaner sources of energy.

On Friday, Russia’s President Vladimir Putin raised the stakes in energy tensions between Russia and Europe, laying out conditions for extending an economic lifeline to Ukraine after talks with Germany’s Chancellor Angela Merkel.

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