OREANDA-NEWS. Bashneft has started pilot operations at a new hydrogen production unit at the Bashneft-Novoil Branch. The ceremony to mark the completion of the large-scale investment project was attended by the Deputy Chairman of the Government of Bashkortostan Dmitry Sharonov and JSOC Bashneft's President Alexander Korsik.

'It is important that Bashneft has been and remains one of the largest investors in Bashkortostan's economy, investing heavily in upgrading production capacities,' emphasized the Deputy Chairman of the Government of Bashkortostan Dmitry Sharonov. 'Commissioning of the new unit based on state-of-the-art hydrogen production technologies shows that the Company is committed to a strategy of innovative development and environmental responsibility.'

'Commissioning of the new unit is an important milestone in the implementation of our strategy for upgrading production capacities, and marks the transition of the Company's refineries to a new technological heights,' highlighted Bashnneft President Alexander Korsik. 'Implementation of this large-scale project will ensure that 100% of the gasoline and diesel fuel we produce meets Euro 5 standard, but also make an additional substantial contribution to environmental protection.'

The commissioning of the hydrogen production unit marks the completion of an important stage in Bashneft's Ufa refinery upgrade programme aimed at meeting the requirements of Russia's Technical Regulations on engine fuel quality. Presently, the new unit is the largest in Russia, with its rated capacity of 420 tonnes per day.

Upon commissioning, total hydrogen production at the Company's refineries will nearly triple; given close cooperation between production sites, this will enable to fully satisfy the need for hydrogen. The unit will enable Bashneft to ensure that all automotive fuels it produces meet the Euro 5 emission standard and have an extremely low sulphur content of less than 10 ppm (0.001%).

Construction of the unit started in September 2012. Over RUB 12 billion was invested in the project.

Note: The hydrogen production unit at the Bashneft-Novoil Branch was constructed under a licence from Foster Wheeler (a U.S. company). The unit's output totals 420 tonnes per day (153 thousand tonnes per year).The unit produces high-purity (99.99%) industrial hydrogen used in hydrotreating. An additional short-cycle adsorption unit improving the purity of hydrogen produced during gasoline reforming is an important part of the project.

OJSC Promfinstroy was employed as the general construction contractor. Over 25 contractor companies were engaged in construction.

Prior to the commissioning of this unit, hydrogen had been produced at two units with the total capacity of 60 thousand tonnes per year forming part of a hydrocracking complex at the Bashneft-Ufaneftekhim Branch and one unit with the capacity of 20 thousand tonnes per year at the Bashneft-UNPZ Branch.