PAO NOVATEK announced that its joint venture Cryogas-Vysotsk signed a power purchase agreement for renewable electricity produced by the European energy company Fortum in Russia. The Agreement builds on the cooperation of NOVATEK and Fortum under the Memorandum of Understanding that the Parties signed at the Saint-Petersburg International Economic Forum in June 2021.
According to the Agreement, the electricity requirements of the Company's Cryogas-Vysotsk LNG plant will be fully covered with energy produced at Russian wind farms of Fortum and its joint ventures. Purchasing the green electricity will allow NOVATEK to reduce Scope 2 carbon footprint (purchased electricity) of the LNG produced by the Vysotsk plant.
"Using green energy to power natural gas liquefaction is an effective way to reduce the LNG's carbon footprint, – noted Leonid Mikhelson, Chairman of NOVATEK's Management Board. – This is an emerging area of activity for us and we are considering various ways of using wind power in our LNG projects. Buying third-party renewable energy is an economically efficient solution that helps reduce carbon emissions in the region as a whole and contribute to further development of wind farms in Russia."
Cyrogas-Vysotsk is a medium-scale LNG project located in the port of Vysotsk, Leningrad Region of Russia on the Baltic Sea. The LNG is mainly exported to the Baltic countries, including Finland, Sweden, Lithuania and Estonia. The project’s design capacity is 660 thousand tonnes of LNG per annum, and its infrastructure includes a 42 thousand cubic meters LNG storage tank and an offloading jetty capable of handling LNG carriers with a capacity of up to 30 thousand cubic meters. NOVATEK acquired a 51% participation interest in Cryogas-Vysotsk in July 2017.
PAO NOVATEK is the largest independent natural gas producer in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company’s upstream activities are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation. The Company’s shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol “NVTK”.