February 1, 2022
PAO Severstal has announced an investment in Ekona Power
Inc., a Canadian developer of low-carbon hydrogen production technology.
According to Ekona Power Inc., in addition to Severstal Ventures, American
technology company Baker Hughes (headquarters: Houston, Texas), Japanese
trading and investing company Mitsui (headquarters: Tokyo, Japan), and American
oil company ConocoPhillips (headquarters: Houston, Texas) also took part in the
financing round, in addition to other investors.
Ekona Power Inc. is a developer of hydrogen production
technology based on a novel methane pyrolysis process. Under the process,
natural gas is converted into hydrogen and solid carbon, significantly reducing
CO2 emissions at a low production cost. Ekona’s fully commercialised hydrogen
production plants will generate up to 100 thousand tons of hydrogen per year
for under $1.5 per kilogram.
The steel industry has a higher potential than other carbon
intensive industries for CO2 emissions reduction using hydrogen. However, the
hydrogen used must have a low carbon footprint itself, and be cost-effective to
produce, so as not to impose an additional burden on the cost of steel
production.
Andrey Laptev, Director of Business Development and
Corporate Venture projects at Severstal, commented:
“Decarbonisation is crucial for the future of the steel
industry. Any long-term competitive advantage is now dependent on investments
in advanced steel production methods. Ekona Power’s innovative technology will
help us solve the problem of reducing CO2 emissions – not just for Severstal,
but across the whole industry. The participation of Severstal Ventures in such
a significant project once again confirms our commitment to reducing carbon
dioxide emissions for our industry and combating climate change.”
Ilya Pavlov, Head of Hydrogen and Decarbonisation
projects at Severstal, and Managing Director of Severstal Ventures,
commented:
“Initiatives to develop and commercialise breakthrough
technologies to produce low-carbon hydrogen are highly attractive to investors.
Producing hydrogen by methane pyrolysis has a promising future, and Ekona Power
Inc. is certainly a frontrunner among the companies developing technologies for
this process. We have become a strategic investor and partner of Ekona Power
Inc., demonstrating Severstal Ventures’ leadership in the highly competitive
field of hydrogen technology investments.”
