Novatek to buy Russian wind power from Rosatom

Russian liquefied natural gas (LNG) producer Novatek PAO (MCX:NVTK) has signed a Memorandum of Understanding (MoU) to buy green power generated by wind farms owned by compatriot Rosatom.

The pact was signed on Wednesday during the Russian Energy Week international forum as part of Novatek’s efforts to decarbonise its activities, the gas supplier said in a bourse filing.

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Under the arrangement, the agreed power volumes will be procured by Novatek’s subsidiaries Ust-Luga Gas Condensate Fractionation and Transshipment Complex. Additionally, Rosatom and Novatek have agreed to jointly develop wind projects and explore opportunities to deploy Rosatom’s engineering solutions in the production of LNG, low-carbon hydrogen and ammonia.

"We pay particular attention to reducing the carbon footprint of our products, whereby we make them more competitive and contribute to preventing the global climate change," said Leonid Mikhelson, Novatek’s chairman of the management board.

Rosatom is active in the wind power market through its NovaWind division, which was set up in 2017 and now has 720 MW of wind turbines in operation across Southern Russia. Last month, the entity signed a pact with authorities in Dagestan to develop wind projects in the North Caucasus Russian Republic, targeting up to 315 MW.