Azerbaijan readies for hydrogen production

By Azernews

An interdepartmental working group on hydrogen has been established in Azerbaijan in order to conduct research and prepare proposals for the production of hydrogen in the country, Deputy Director of Azerbaijan's State Agency on Alternative and Renewable Energy Sources Kamran Huseynov said.

He made the remark at the panel discussion themed "Hydrogen as a Tool for the Transition to Clean Energy" as part of the "Green Hydrogen: Path to Decarbonization" seminar.

The official noted that the working group collaborated with the European Bank for Development and Reconstruction (EBRD) to develop a study on the topic "Assessment of Potential for a Low-Carbon Hydrogen Economy in Azerbaijan". Thus, in January last year, a kick-off meeting was held with a consultant selected by the EBRD, during which a project plan was presented to interested parties, he added.

Besides, Huseynov stated that Azerbaijan is working on four more bills of the draft law on electricity production.

"They are related to supporting mechanisms for the participation of active producers, the issuance of certificates for the production of renewable energy and information systems for renewable energy sources. These bills have been prepared and are currently being approved by the Cabinet of Ministers," he said.

The deputy director also highlighted that leveled cost of green hydrogen (LCOH) in Azerbaijan can be competitive with other markets given the relatively low cost of renewable energy production. He added that the Southern Gas Corridor can be used to deliver hydrogen mixed with natural gas to energy markets.

According to the official, another option for supplying green hydrogen can be an autonomous H2 pipeline.

“The production and export of green ammonia and green hydrogen can also be considered as an option, taking into account rail and pipeline links with other countries," Huseynov said.

The official of the agency underlined that Azerbaijan Renewable Energy Agency was established in accordance with presidential decree dated September 22, 2020.

“The main objectives of the agency are to increase the share of renewable energy sources within the installed electricity generation capacity up to 30 percent by 2030, to transform the liberated territories into the "Green Energy" Zone, and to ensure the participation of the private sector in this area,” he stressed.

Speaking at the event, Director of the Azerbaijan Renewable Energy Agency (AREA) under Energy Ministry Javid Abdullayev emphasized that the green energy production potential in Azerbaijan is about 200 GW.

Abdullayev then noted that Azerbaijan intends to increase the share of renewable energy in electricity generation to 30 percent by 2030.

"The agreement signed last December between Azerbaijan, Georgia, Hungary, and Romania will allow supplying up to four gigawatts of green energy to Europe," the official said.

Moreover, Director of Masdar Azerbaijan Murad Sadikhov stated that the company plans to implement various projects in Azerbaijan.

In particular, he noted that the company plans to implement a 1 GW onshore wind project by 2026, a 2 GW offshore wind project, and a green hydrogen project by 2033, and further expand the use of solar, onshore, and offshore wind by 2037.

"In 2022, Masdar and Azerbaijan’s Energy Ministry signed an agreement on the development and investment in renewable energy sources. Also in 2022, the parties signed an implementation agreement that covers a number of offshore wind energy projects and green hydrogen production," he said.

He also added that the company signed an agreement with SOCAR to explore the potential for electrification of their offshore oil and gas facilities in the Caspian Sea using offshore wind power.