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Prospects and Obstacles for Green Hydrogen Production in Russia

Author

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  • Alexandra Kopteva

    (Department of Electrical Engineering, Saint Petersburg Mining University, 21st Line of the VI, 2, 199106 Saint Petersburg, Russia)

  • Leonid Kalimullin

    (Department of Strategic Development, RusHydro, 7 Malaya Dmitrovka Street, 127006 Moscow, Russia)

  • Pavel Tcvetkov

    (Department of Economics, Organization and Management, Saint Petersburg Mining University, 21st Line of the VI, 2, 199106 Saint Petersburg, Russia)

  • Amilcar Soares

    (Instituto Superior Técnico, Universidade de Lisboa, Av. Rovisco Pais, 1049-001 Lisbon, Portugal)

Abstract

Renewable energy is considered the one of the most promising solutions to meet sustainable development goals in terms of climate change mitigation. Today, we face the problem of further scaling up renewable energy infrastructure, which requires the creation of reliable energy storages, environmentally friendly carriers, like hydrogen, and competitive international markets. These issues provoke the involvement of resource-based countries in the energy transition, which is questionable in terms of economic efficiency, compared to conventional hydrocarbon resources. To shed a light on the possible efficiency of green hydrogen production in such countries, this study is aimed at: (1) comparing key Russian trends of green hydrogen development with global trends, (2) presenting strategic scenarios for the Russian energy sector development, (3) presenting a case study of Russian hydrogen energy project «Dyakov Ust-Srednekanskaya HPP» in Magadan region. We argue that without significant changes in strategic planning and without focus on sustainable solutions support, the further development of Russian power industry will be halted in a conservative scenario with the limited presence of innovative solutions in renewable energy industries. Our case study showed that despite the closeness to Japan hydrogen market, economic efficiency is on the edge of zero, with payback period around 17 years. The decrease in project capacity below 543.6 MW will immediately lead to a negative NPV. The key reason for that is the low average market price of hydrogen ($14/kg), which is only a bit higher than its production cost ($12.5/kg), while transportation requires about $0.96/kg more. Despite the discouraging results, it should be taken into account that such strategic projects are at the edge of energy development. We see them as an opportunity to lead transnational energy trade of green hydrogen, which could be competitive in the medium term, especially with state support.

Suggested Citation

  • Alexandra Kopteva & Leonid Kalimullin & Pavel Tcvetkov & Amilcar Soares, 2021. "Prospects and Obstacles for Green Hydrogen Production in Russia," Energies, MDPI, vol. 14(3), pages 1-21, January.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:3:p:718-:d:490128
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    References listed on IDEAS

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    4. Tarkowski, R. & Uliasz-Misiak, B., 2022. "Towards underground hydrogen storage: A review of barriers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    5. Pieter W. M. Vasbinder & Antoine W. G. de Vries & Wim Westerman, 2021. "Hydrogen Infrastructure Project Risks in The Netherlands," Energies, MDPI, vol. 14(19), pages 1-19, September.
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    7. Marek Jaszczur & Qusay Hassan & Aws Zuhair Sameen & Hayder M. Salman & Olushola Tomilayo Olapade & Szymon Wieteska, 2023. "Massive Green Hydrogen Production Using Solar and Wind Energy: Comparison between Europe and the Middle East," Energies, MDPI, vol. 16(14), pages 1-26, July.
    8. Martins, Flavio Pinheiro & De-León Almaraz, Sofía & Botelho Junior, Amilton Barbosa & Azzaro-Pantel, Catherine & Parikh, Priti, 2024. "Hydrogen and the sustainable development goals: Synergies and trade-offs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 204(C).
    9. Nikolay Tsvetkov & Stanislav Boldyryev & Aleksandr Shilin & Yuriy Krivoshein & Aleksandr Tolstykh, 2022. "Hardware and Software Implementation for Solar Hot Water System in Northern Regions of Russia," Energies, MDPI, vol. 15(4), pages 1-18, February.
    10. Enas Taha Sayed & Abdul Ghani Olabi & Abdul Hai Alami & Ali Radwan & Ayman Mdallal & Ahmed Rezk & Mohammad Ali Abdelkareem, 2023. "Renewable Energy and Energy Storage Systems," Energies, MDPI, vol. 16(3), pages 1-26, February.
    11. Cristina Hora & Florin Ciprian Dan & Nicolae Rancov & Gabriela Elena Badea & Calin Secui, 2022. "Main Trends and Research Directions in Hydrogen Generation Using Low Temperature Electrolysis: A Systematic Literature Review," Energies, MDPI, vol. 15(16), pages 1-21, August.
    12. Cheilas, Panagiotis T. & Daglis, Theodoros & Xidonas, Panos & Michaelides, Panayotis G. & Konstantakis, Konstantinos N., 2024. "Financial dynamics, green transition and hydrogen economy in Europe," International Review of Economics & Finance, Elsevier, vol. 94(C).
    13. Vladimir Kindra & Andrey Rogalev & Maksim Oparin & Dmitriy Kovalev & Mikhail Ostrovsky, 2023. "Research and Development of the Oxy-Fuel Combustion Power Cycle for the Combined Production of Electricity and Hydrogen," Energies, MDPI, vol. 16(16), pages 1-21, August.
    14. Konstantin Gomonov & Marina Reshetnikova & Svetlana Ratner, 2023. "Economic Analysis of Recently Announced Green Hydrogen Projects in Russia: A Multiple Case Study," Energies, MDPI, vol. 16(10), pages 1-15, May.
    15. Alexey Cherepovitsyn & Evgeniya Rutenko, 2022. "Strategic Planning of Oil and Gas Companies: The Decarbonization Transition," Energies, MDPI, vol. 15(17), pages 1-26, August.
    16. Armin Razmjoo & Mostafa Rezaei & Seyedali Mirjalili & Meysam Majidi Nezhad & Giuseppe Piras, 2021. "Development of Sustainable Energy Use with Attention to Fruitful Policy," Sustainability, MDPI, vol. 13(24), pages 1-17, December.
    17. Andrea Dumančić & Nela Vlahinić Lenz & Goran Majstrović, 2023. "Can Hydrogen Production Be Economically Viable on the Existing Gas-Fired Power Plant Location? New Empirical Evidence," Energies, MDPI, vol. 16(9), pages 1-20, April.

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