Russia in the Global Hydrogen Race. Advancing German-Russian

NO. 34 MAY 2021 Introduction

Russia in the Global Hydrogen Race Advancing German-Russian Hydrogen Cooperation in a Strained Political Climate Yana Zabanova and Kirsten Westphal

In October 2020, Russia adopted a roadmap for hydrogen development, and a full- length Hydrogen Development Concept is expected soon. Even though Russia remains somewhat sceptical about hydrogen’s much-vaunted transformative potential, it is interested in using its natural gas wealth to become a leading exporter of this new energy carrier and views Germany as a key partner in this effort. In the absence of a serious national decarbonisation agenda in Russia, stimulating hydrogen production primarily for exports and without significant domestic demand will be a challenge. Still, amid Russia’s steadily worsening political relations with the West, clean energy (and hydrogen in particular) is one of the few promising areas of cooperation between Germany and Russia, with the potential to become a major steppingstone for the development of hydrogen value chains in both countries.

Mirroring the rapidly rising global interest potential in this emerging sector. Since in hydrogen, the idea of its exportation has then, hydrogen has become the subject of become one of the most hotly discussed high-level conferences and forums, Duma topics in Russia. In late 2018, the govern- roundtables, and countless media articles. ment-funded EnergyNet Infrastructure The adoption of Germany’s National Hydro- Centre, which is tasked with promoting gen Strategy in June 2020, which clearly Russian companies’ technological leader- states the need for hydrogen imports and ship in the energy market, published a emphasises the importance of international report urging Russia to act fast in seizing its partnerships, has lent even greater impetus share of the future global hydrogen market. to Russia’s ambitions to become a hydrogen The report proposed several pilot projects exporter and thereby preserve its position using the existing spare capacity in the Rus- as an energy supplier in the age of global sian power generation system to produce energy transition. clean hydrogen for export from nuclear or hydro energy at a competitive cost. In 2019, another renowned think tank, the Hydrogen Policy-Making in Russia SKOLKOVO Energy Centre, authored a detailed report explaining the latest hydrogen In 2020, Russia adopted two key policy doc- developments internationally and Russia’s uments outlining its hydrogen development

plans. The first is the Energy Strategy until Given that emissions fell precipitously fol- 2035, which was adopted in June 2020 and lowing the dissolution of the USSR in 1991, is premised on the continuing importance this target has already been reached by of hydrocarbons while also setting the goal default (in 2018, emissions stood at ca. 52% of making Russia one of the world’s leading of the 1990 level). In the draft Strategy for producers and exporters of hydrogen. The Low-Carbon Development, even the most export targets in the Strategy stand at 0.2 climate-friendly scenario includes an abso- million tons by 2024 and 2 million tons by lute rise in emissions from the current level. 2035. While the Strategy does mention the A gaping omission in Russia’s current need to stimulate domestic demand for policy documents is green hydrogen, hydrogen (e.g. in the transport sector and although the new Hydrogen Concept will for energy storage), its overall export likely introduce some mention of it. Russia orientation is unmistakable. is home to limited wind and solar capacity The second document, the Roadmap for – less than 3 GW in total, installed mainly Hydrogen Development until 2024, was in the past few years and accounting for adopted in October 2020 and assigns a spe- less than 1% of the total electricity genera- cial role to Gazprom and Rosatom in meet- tion. As for large hydro (ca. 49 GW of in- ing the goals set in the Energy Strategy. The stalled capacity), the extent to which it is Roadmap emphasises Russia’s perceived suitable for producing renewable hydrogen competitive advantages in hydrogen (such deserves further investigation. While there as technological know-how and R&D, the are no green hydrogen projects in Russia at existing resource base, significant spare the moment, a handful of companies have capacity in the power generation system, a indicated potential interest. Enel Russia, developed transport infrastructure, and which is active in Russia’s wind power mar- geographic proximity to major consumers) ket, is currently constructing a 201 MW and outlines the first steps to be taken. windfarm on the Kola Peninsula in Mur- At the moment, energy circles in Russia mansk Oblast that is expected to be com- are awaiting the adoption of a full-length pleted in December 2021. Together with detailed Concept for Hydrogen Develop- Rusnano, Russia’s large innovation devel- ment, in which Russia will reportedly em- opment institution, Enel Russia has an- phasise strategic cooperation with Germa- nounced plans to produce 12,000 tons of ny, France, Japan and South Korea. The green hydrogen annually at this windfarm draft Concept estimates that by 2050, Rus- for export to the EU. However, there is a sia will export between 7.9 and 33.4 million great deal of uncertainty about this pilot tons of hydrogen annually, earning up to project, from the cost of such hydrogen to $100 billion in revenues. There is vivid the available transportation routes (as there discussion among Russian experts on the are no gas pipelines in Murmansk Oblast). key directions of hydrogen policy and on striking the right balance between exports, domestic demand and hydrogen technology Key Actors in Russia’s Hydrogen development. As many caution, building a Development Plans strong hydrogen economy at home is essential to becoming a leading hydrogen Gazprom exporter. Importantly, hydrogen development in In light of the expected fall of future de- Russia is not (yet) part of a larger drive for mand for natural gas in the EU, exports of decarbonisation. Russia has not introduced low-carbon hydrogen – produced from carbon regulation and its commitments natural gas – could be a potential lifeline under the Paris Agreement are unambi- for Gazprom’s business model. Gazprom is tious, amounting to a reduction of 30% already a major producer of hydrogen – to from the 1990 level of emissions by 2030. the tune of some 360,000 tons annually –

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2 although most of it is “grey” hydrogen pro- producing hydrogen on site in Europe, duced by steam methane reforming (SMR), close to large industrial consumers. At the a process which releases large amounts of German-Russian Raw Materials Forum in

CO2 into the atmosphere. The corporation December 2020, Gazprom’s Alexander has begun actively lobbying the EU to adopt Ishkov floated the idea of building a hydro- a technologically neutral approach to gen production facility in northern Ger- hydrogen, focusing on total CO2 emissions many, at the site of the landfall of Nord instead of prioritising renewable hydrogen. Stream 1 and (if completed) Nord Stream 2, A key challenge for Gazprom will be to where hydrogen would be produced from find scalable and economical ways to re- Russian gas using either SMR with CCUS, or duce the carbon footprint of its hydrogen methane pyrolysis. In late 2020, Gazprom production – be it by deploying carbon announced the creation of a new company, capture, utilisation and storage (CCUS, a “Gazprom Hydrogen”, that will be respon- technology that is not currently used in sible for advancing Gazprom’s hydrogen Russia), or methane pyrolysis (a promising business. On the whole, however, Gazprom novel method in which hydrogen and solid is yet to go beyond declarative statements carbon, rather than CO2, are produced from and undertake concrete efforts in clean methane). Gazprom is cooperating with hydrogen development. Tomsk Polytechnic University in refining the latter technology, yet its technology Rosatom readiness level (TRL) remains low. However, several forms of methane pyrolysis are Rosatom’s hydrogen plans have received being developed internationally (e.g. by the limited media attention in Europe so far, Karlsruhe Institute of Technology in coop- even though it included hydrogen develop- eration with Wintershall Dea). ment as a priority in its corporate R&D It is often argued that Russia’s vast net- policy in 2018 and is implementing several work of gas export pipelines (which is ex- pilot projects. As the Russian state’s nuclear clusively controlled by Gazprom) gives it an corporation and most technologically ad- advantage as a potential hydrogen exporter. vanced large company, Rosatom is inter- In October 2019, Eurogas Secretary General ested in the entire hydrogen supply chain. James Watson said that the Nord Stream 2 Over the next few years it plans to act as an gas pipeline, when completed, could poten- investor and developer, with a longer-term tially transport as much as 80% hydrogen. goal of becoming a hydrogen technology The reality is more complicated. Gazprom’s provider – including launching the pro- representatives have openly expressed scep- duction of electrolysers (which, for now, ticism regarding transporting hydrogen or Russia imports). In April 2021, Rosatom hydrogen-methane blends through their gas signed an agreement with the EDF Group to pipelines, citing safety concerns. According cooperate on low-carbon hydrogen projects to Gazprom, no studies have been under- in the area of transport and industrial de- taken to determine to what extent and at carbonisation in Russia and Europe. what cost this gas infrastructure could be Nuclear-based hydrogen is an interesting used to transport hydrogen and what share proposition for Rosatom, which already of blending is possible without risking produces some 4,200 tons of it annually. It hydrogen embrittlement. While the Minis- would allow Rosatom to increase the load try of Economic Development suggested in factor of its nuclear generation assets, some April 2021 to provide all independent of which are operating below capacity (e.g. hydrogen producers access to the gas trans- the Kola Nuclear Power Plant in Murmansk portation system, this proposal is likely to Oblast). Importantly, however, Rosatom face fierce opposition. maintains technological neutrality: its R&D Instead, Gazprom’s leadership has re- programme encompasses a wide spectrum peatedly expressed a clear preference for of hydrogen production methods, including

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3 electrolysis, SMR with CCS, and high-tem- green hydrogen to Uniper’s power stations perature gas-cooled reactors (HTGRs). As a in Russia and Europe. Also, Novatek is major player in the Russian wind market, mulling plans to produce some 2.2 million with a 360 MW portfolio of completed tons of low-carbon ammonia (either green projects and much more in the pipeline, or blue) at its Yamal LNG port in Sabetta; Rosatom is also open to exploring green an investment decision is expected in early hydrogen production. 2022. Moreover, Novatek is considering Currently, Rosatom is conducting feasi- switching its planned Ob LNG plant to clean bility studies on two hydrogen projects on ammonia production. Ammonia, like LNG, the far eastern island of Sakhalin, which is can be transported by tanker, which means expected to become the first hydrogen clus- that Novatek would not need to depend on ter in Russia. The first project, on the use of Gazprom’s pipeline system. hydrogen in rail transport, is being implemented in cooperation with Russian Rail- Hydrogen Technology Valley ways (RZD), Transmashholding (a machine- building holding) and the Sakhalin Oblast Russia possesses a solid scientific back- regional government. Seven suburban ground in hydrogen research dating back to hydrogen trains are planned to be launched the Soviet era. Several flagship universities by 2025 and 13 more by 2030. Rosatom’s are conducting research on hydrogen role in the project is to produce hydrogen technologies ranging from energy storage and create hydrogen fuelling infrastructure systems and hydrogen-powered drones and on the island. The second project aims to automobiles to new hydrogen production export low-carbon hydrogen to Japan. In methods like methane pyrolysis. However, September 2019, Rusatom Overseas, a sub- much of this R&D is narrowly specialised sidiary of Rosatom, signed a cooperation and compartmentalised, the TRL is low, and agreement with Japan’s Ministry of Econo- commercialisation remains a challenge. my, Trade and Industry to conduct a feasi- In November 2020, initiated by Tomsk bility study on exporting liquefied hydro- Polytechnic University, six prestigious tech- gen from Russia to Japan. The results of the nical universities in Russia came together study should be available by summer 2021. to set up the so-called “Technological Building on this project, in April 2021, Hydrogen Valley.” The goal of this research Rosatom signed a memorandum of under- cluster is to create synergies in hydrogen standing (MoU) with France’s Air Liquide (a research and to establish cooperation with leading industrial gases company) and the key business actors interested in hydrogen Sakhalin regional government on conduct- development in Russia, including Rosatom, ing a feasibility study on large-scale blue Gazprom, Severstal, Gazprom Neft and hydrogen production (30,000-100,000 tons Sibur. The consortium also plans to expand annually). If implemented, this would be- international cooperation, which is where come Russia’s largest low-carbon hydrogen German and EU research centres can come production project. into play. In what could potentially be a game- Novatek changer, AFK Sistema, a leading private investor in the Russian economy, has an- Novatek is an independent gas company nounced plans to launch an all-Russian and a leading liquefied natural gas (LNG) hydrogen science and technology centre in producer in Russia. Although not explicitly Chernogolovka in partnership with the mentioned in the Hydrogen Roadmap, the Institute of Problems of Chemical Physics. company has signalled its intentions to take The centre would include a production part in hydrogen development in Russia. In facility for developing product prototypes

January 2021, Novatek and Uniper signed (including hydrogen fuel cells and H2 an MoU on Novatek supplying blue and storage solutions) and promises to work

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4 towards the commercialisation of hydrogen tion and the use of methane-hydrogen research in Russia. blends for vehicles. The proposed Arctic cluster is expected to draw on the potential of hydrogen use for First Initiatives for Building a energy storage in remote and isolated areas. Hydrogen Economy in Russia Much of Russia’s vast, sparsely populated Arctic territory is isolated from the national Regional Hydrogen Clusters power grid and is supplied with environ- mentally polluting diesel at an exorbitant Drawing on the European examples of cost. This region stands to benefit most im- hydrogen valleys, the EnergyNet expert mediately from a switch to cleaner energy, centre has proposed the creation of three as acknowledged by even the staunchest unique regional hydrogen clusters in hydrocarbon supporters. Yakutia, Russia’s Russia: in the Far East (Sakhalin), the largest federal region, has already imple- northwest (St. Petersburg) and the Arctic. mented a number of hybrid diesel-renew- Of all three, the Sakhalin cluster project able energy projects and is currently work- is the most developed. In April 2021, Ros- ing on a pilot project with Moscow Bauman atom, the Sakhalin Government and Rus- Technical University to use renewable sia’s Federal Ministry for the Development hydrogen for energy storage. Another pro- of the Far East and the Arctic signed an posed pilot platform exploring hydrogen- official cooperation agreement on the crea- based solutions for energy storage and tion and development of this cluster. This transportation is the projected zero-carbon island, whose governor Valery Limarenko international Arctic research station formerly held high-level positions in “Snezhinka” (Snowflake), whose opening Rosatom, is the proposed site for Rosatom’s is planned for 2023. hydrogen projects described above, such as projects to explore exports of liquefied Hydrogen as Industrial Feedstock hydrogen to Japan, with the ambition of supplying up to 40% of Japan’s demand by Due to the lack of domestic carbon regula- 2030, and potentially to other Asian Pacific tion, the idea of using clean hydrogen to countries. Sakhalin is also expected to decarbonise industry has not yet gained become a testing platform for the use of acceptance in Russia. The currently dis- hydrogen and hydrogen-methane blends, cussed draft law on limiting GHG emissions such as in the fields of heavy-duty mining has been rendered toothless by pressure equipment, and passenger transport. In the from industry groups: it envisions only future, Sakhalin may also produce green voluntary reporting of CO2 emissions by hydrogen from wind power. Finally, Sakha- large emitters and contains no restrictive lin is the first Russian region aiming at measures such as emission caps or fines. carbon neutrality (by 2025) and has been Nevertheless, the tightening of interna- selected as a testing ground for carbon tional climate policies is certain to affect trading mechanisms that may be intro- Russia’s large export-oriented companies, duced in Russia in the coming years. and some of them, especially in the metals The northwestern cluster is expected industry, are beginning to take steps to to be centred in St. Petersburg. It will be reduce their carbon footprint. Russia’s oriented towards exporting hydrogen pro- aluminium giant Rusal has introduced duced by electrolysis at the Leningradskaya ALLOW, its own brand of “green alumini- hydro power plant but will also aim to use um” with a carbon footprint of less than hydrogen to decarbonise certain industrial 4 tons of CO2 per ton. Rusal’s “green alu- processes and transportation. This includes minium” is produced with energy from direct hydrogen iron reduction in the steel large Siberian hydropower plants and its industry, hydrogen use in cement produc- demand is expected to grow in the coming

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5 years. Another promising example is NLMK, InEnergy has received funding from the a leading steel producer in Russia, which is Russian Venture Fund and closely collabo- cooperating with Air Liquide in developing rates with the Institute of Problems of its hydrogen assets and reducing the carbon Chemical Physics. Its staff are actively footprint of its steel. In January 2021, NLMK involved in processes of hydrogen policy- also signed a MoU with Novatek to cooper- making as well. Currently, InEnergy is ate on low-carbon technologies, CCUS and partnering with Russia’s truckmaking giant, the use of hydrogen as a clean fuel in KAMAZ, to develop hydrogen bus proto- industrial processes. types, one of which is expected to be pres- Russian companies are closely watching ented this autumn. KAMAZ, which already developments around the EU’s Carbon Bor- produces lithium-ion electric buses, has der Adjustment Mechanism (CBAM), which included hydrogen-powered buses and is widely viewed in Russia as one of the trucks in its R&D programme for 2021. most significant threats to its carbon inten- Finally, the wealthy Moscow City Trans- sive-economy. According to one oft-cited port Department, which is investing heavily forecast by KPMG, Russia stands to lose up into an electric bus fleet, has shown interest to €50.6 billion by 2030 as a result of the in hydrogen-fuelled buses (which may be CBAM. Once the final design of the Mecha- more suitable for Moscow’s frosty winters). nism becomes clear, Russian companies in Rosatom and Transmashholding, which are the chemical, metals and petrochemical planning to create a joint venture to pro- industries will intensify their efforts to mote hydrogen mobility solutions, are reduce the carbon footprint of their pro- hoping to participate in implementing this ducts, and hydrogen may become one of vision. the solutions in this process, next to using What remains critical, however, is the renewable energy, CCUS and investing in creation of hydrogen fuelling infrastruc-

forests as carbon sinks. This may also open ture. Today, Russia is home to a single H2 a window of opportunity for German and fuelling station located in Chernogolovka. EU companies to provide technologies and When presenting hydrogen-powered bus know-how to aid Russia in industrial and truck prototypes at a recent conference, decarbonisation. a KAMAZ spokesman drove the point home by saying the prototypes are meant for Hydrogen in the Transport Sector export, as hydrogen infrastructure in Russia is still lacking. One positive initiative in this The transport sector is set to become the direction is the proposed Moscow-Kazan first hydrogen technology niche in Russia Hydrogen Highway. for a number of reasons: there are emerging Still, competition among technologies Russian technology providers, concrete remains a concern. Hydrogen is a new en- pilot projects (such as the Sakhalin hydro- trant to an area in which other forms of gen train), and an interest on the part of mobility have greater visibility and funding. investors. There is also a successful demon- One of them is Russia’s state programme to stration project, the hydrogen-powered promote natural gas as a fuel for vehicles, tram in St. Petersburg developed by the which has received large amounts of Krylov State Research Centre in 2020. Presi- funding and is run by Gazprom’s subsidiary dent Putin, too, has recently emphasized Gazprom Gazomotornoye Toplivo. the importance of hydrogen-based public transport, calling to launch the production of hydrogen buses by 2023. Rationale and Prospects for Today, Russia’s most advanced company German-Russian Cooperation specialising in hydrogen technologies such as fuel cells and energy storage solutions is Given the deep security crises between Rus- InEnergy, a start-up established in 2015. sia and the West, any proposal for deeper

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6 engagement with Russia is bound to be eral cooperation in business, technology controversial. Yet, if there is political will and science. for cooperation, sustainable energy remains Geography matters, and Russia is here to one of the few promising and mutually stay as a neighbour and supplier of raw beneficial areas. Besides, energy trade al- materials (such as platinum and iridium for ready requires mutual flanking to manage electrolysers). Moreover, to make climate- the effects of decarbonisation. neutral Europe a reality, it is also important The German and Russian ministries re- to be conscious of the “Green Paradox”: sponsible for energy signed a letter of intent if Europe simply discontinues importing on April 20, 2021. For Germany, benefits hydrocarbons from Russia, these resources of cooperation include not only potential will not stay buried in the ground but will access to low-carbon hydrogen, but also the be sold cheaply to fast-growing Asian econ- opening of a market for German hydrogen omies, producing no net gains for the glob- technologies and, more strategically, a spe- al climate. It would thus be preferable to cial role in accompanying Russia’s adapta- harness Russia’s fossil fuels – for example, tion to a decarbonising Europe. A German- by producing low carbon hydrogen with Russian hydrogen partnership could play a CCS, turquoise hydrogen by pyrolysis, and crucial role in common research, innova- by addressing methane leakage. tion and scaling of technologies. Germany’s On paper, there is a solid foundation for decision to include hydrogen as a priority developing a hydrogen partnership between area in the bilateral sustainable energy rela- Germany and Russia and for rapidly build- tionship with Russia and to open a Hydro- ing up hydrogen production and delivery gen Office in Moscow are corresponding chains. This includes the existence of a steps. significant gas infrastructure (with parallel Working towards a decarbonised future strings of pipes that enable a gradual phase- requires finding ways to engage large out of gas transport and the repurposing of hydrocarbon exporters in reorienting their said pipes and compressors for hydrogen), oil-based growth models. Given that the EU long-standing corporate joint-venture across is the most important market for Russia’s gas value-chains, as well as close business hydrocarbon exports, its decarbonisation ties and technological and scientific coop- agenda represents a serious challenge to eration. Russia’s economic model and rent econo- The strained political ties remain a major my. In a decarbonised energy world, con- obstacle. Besides, a number of hurdles need version rather than resource extraction will to be addressed by both sides. The first is play a greater role, and technologies and the general chicken and the egg problem know-how will gain importance, creating that affects hydrogen development world- new business models and completely new wide, namely: how, why and when should value chains based on availability of tech- new value chains, let alone transport, be nologies and their respective innovation changed and created if neither demand nor and life cycles. As in any transition, this supply is secured? In the past, long-term process will create winners and losers. contracts across the vertically integrated While falling hydrocarbon rents will affect value chain with price-linked contracts Russian elites, the transition may also offer helped to overcome such hurdles. Against a lifeline to many companies and corpora- the regulatory framework in the EU, new tions. German-Russian cooperation on mechanisms and contractual schemes to hydrogen technologies can incentivise reliably match supply and demand must be modernisation, transform the energy sector developed and transport secured. Low- and certain aspects of industry, and help to carbon and carbon-neutral hydrogen will smooth Russia’s transition to the new not just face a significant price gap with energy landscape. It could also boost bilat- grey hydrogen, but even more so with other alternative fuels they are to replace.

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7 The second challenge – again not spe- cal prioritisation. A climate-neutral Europe cific to, but highly relevant for Russia – has much to gain from repurposing the has to do with the categorisation of hydro- embattled Nord Stream 2 (partly) for hydrogen. German political discourse tends to gen and making it a central part of a new focus on the “colours” of hydrogen rather Hydrogen-Technology-Pipe deal. Such a deal than on the relative carbon footprint of could and should be expanded from a bilat- different hydrogen production methods. eral arrangement to an inclusive European This represents a constraint and voluntary project. limitation when compared to many other hydrogen importing countries. In fact, there © Stiftung Wissenschaft are many good reasons to look at the car- Conclusion und Politik, 2021 bon content, and, for the sake of consisten- All rights reserved cy and transparency, to adopt taxonomy Russia is signalling its interest in joining thresholds as reference points. As we have the global hydrogen race and envisions This Comment reflects seen above, Russia is considering a wide itself as a future hydrogen supplier for the authors’ views. range of hydrogen production methods, Germany and the Asia Pacific. However, it The online version of including at large hydro and nuclear power should be aware that becoming a key this publication contains plants – an approach it shares with many hydrogen exporter goes hand in hand with functioning links to other of its potential partners such as France, building a strong hydrogen economy at SWP texts and other relevant South Korea and Japan. While it is clear home. If Russia wants to secure its place in sources. that Germany’s support scheme for long- the global energy transition it cannot avoid SWP Comments are subject term and market-based importation, “H2 the adoption of more ambitious decarboni- to internal peer review, fact- Global”, will exclusively support green sation policies at home. Also, when it checking and copy-editing. hydrogen, the jury is still out on the impor- comes to hydrogen, Russia cannot assume For further information on tation and consumption of other types of it will remain an indispensable supplier for our quality control pro- low-carbon hydrogen. the EU by default. Leading economies like cedures, please visit the SWP website: https://www.swp- The third obstacle is technology scepti- Germany have many other options for part- berlin.org/en/about-swp/ cism and critical views of CCS in Germany. nerships. As the hydrogen race intensifies, quality-management-for- It might well be a wise industry approach to with governments and corporations com- swp-publications/ produce hydrogen on site in Germany. But mitting large funds to the sector, Russia such a scheme has its pros and cons. On the needs to take a risk and muster the political SWP one hand, it would quickly allow Germany will and resources to seize its share of the Stiftung Wissenschaft und Politik to flexibly address its hydrogen demand future hydrogen market. German Institute for and further develop key technologies. On As for Germany, it should consider the International and the other hand, it would require – in the comparative carbon content of different Security Affairs case of blue hydrogen – the development kinds of hydrogen as the main criteria, or at

of a CO2 network and/or storage facilities. least send clear signals regarding the types Ludwigkirchplatz 3–4 10719 Berlin From the Russian perspective, past expe- of hydrogen that it is willing to buy from Telephone +49 30 880 07-0 riences with changing EU regulation pres- Russia (and others) in order to create cer- Fax +49 30 880 07-100 ent a major hurdle. If there is political will tainty for potential investors. Well thought- www.swp-berlin.org to prioritise sustainable energy as well as to out pilot projects are critical at this early [email protected] overcome these mutual barriers and to re- stage. Last but not least, industrial decar- store trust, then it could once again be time bonisation in Russia is an untapped and ISSN (Print) 1861-1761 ISSN (Online) 2747-5107 to implement large projects across the value very promising area of bilateral cooperation doi: 10.18449/2021C34 chain. The building blocks are obvious. It is which deserves much greater attention. not an issue of technical feasibility, but of negotiable economic challenges and politi-

This comment has been written as part of the “Geopolitics of Hydrogen” project, funded by the German Federal Foreign Office. Yana Zabanova is a Visiting Fellow associated with the project. Kirsten Westphal is the Head of the project and a Senior Associate in the Global Issues Research Division at SWP.

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