Saudi Arabia-based ACWA Power has inked extensive heads of terms agreements to develop a green hydrogen facility and a green ammonia pilot project in the Republic of Uzbekistan.
The company signed the agreement with Uzbekistan’s Ministry of Energy and Uzkimyosanoat, a state-owned chemical company. The company said that the pro projects were the first of their kind in the country.
Commenting on the agreement, Jurabek Mirzamahmudov, Minister of Energy of Uzbekistan said: “We value our collaboration with our long-standing partners, ACWA Power and Uzkimyonosat, and fully support the integration of green hydrogen and its derivatives, which will serve the energy vision of our country.”
He added: “While we take pride in getting this initiative off the ground on fast-track basis, we aim to ensure our readiness and establish the right framework and policies that will serve as the foundation for accelerating the development of green hydrogen projects in the future.”
According to ACWA Power, the first green hydrogen project will be an integrated facility and it will be connected to an existing ammonia plant in Chirchiq, which is 45km from Tashkent, the country’s capital. Upon being operational, the project is expected to generate 3,000 tonnes of green hydrogen a year.
ACWA Power will oversee the full value chain of integration to the existing infrastructure project to green hydrogen, which is expected to improve the service factor of the facility and reduce its dependence on natural gas.
The Saudi group will follow an accelerated development timeline for the facility and aims to commission the project in December 2024.
Meanwhile, the second project involves the development of a 500,000-tonne green ammonia feasibility study. Since this project will reduce Uzbekistan’s dependence on natural gas by 600 million m3 per year, it is expected to cut CO2 emissions by 1.5 million tonnes annually. The study will conclude by the end of next year.
“We are delighted to be working alongside the Ministry of Energy and ACWA Power on this important project, which will assist in reducing carbon emissions in the chemical industry in Uzbekistan and contribute to the global effort to decarbonise. Uzkimyosanoat is fully committed to this initiative and is eager to progress swiftly,” said Korzhikov Evgeniy, Uzkimyosanoat
Mohammad Abunayyan, chairman of ACWA Power said: “Uzbekistan has emerged as one of the most exciting growth countries for ACWA Power in recent years and is our biggest investment geography outside of KSA. We are proud that our giga scale development experience in green hydrogen is making us the preferred choice of partners across the world.
“As the world continues to grapple with the increasing and devastating impact of climate change, the right solutions are the need of the hour. Green hydrogen is considered to be the fuel of the future and we are confident of applying our global expertise in accelerating the development of this vital source of clean energy for Uzbekistan. We are honoured to have committed, like-minded and collaborative partners in the Republic and we will be diligent in our role in providing the best counsel, talent, financing, and integrated technology solutions to ensure a greener future for all.”
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