BAKU, Azerbaijan, September 1. The access of
Azerbaijan's clean hydrogen projects to international markets,
including European markets, and opportunities for cooperation in
this area were discussed with the H2Global Foundation as part of a
business trip to Germany on August 31.
This was announced in a statement released by Azerbaijan
Renewable Energy Agency (AREA).
According to the Agency the talks took place during the meeting
between Deputy Director of AREA Rana Humbatova, Head of the Finance
Department Ragsana Pashayeva and Deputy Director of the Hydrogen
and Green Technologies Department Fuad Hasanov and Project
Coordinator of the Clean Energy Center of the Economic Cooperation
Organization Nigar Shukurova and Co-founder of the H2Global
Foundation Timo Bollerhey.
The meeting exchanged views on the H2Global mechanism, which
promotes the development of clean hydrogen and other low-carbon
fuel markets, its principles of operation, financing of
international projects, and the possibility of delivering clean
hydrogen products from producing countries to European markets.
During the meeting, it was noted that the "H2Global" mechanism is
one of the innovative mechanisms supporting the formation of an
international market for clean hydrogen and its derivatives. Within
the framework of the mechanism, Hintco GmbH, a subsidiary of the
H2Global Fund, purchases clean hydrogen and its derivatives,
including green ammonia, e-methanol and SAF, from producers under
long-term contracts and supplies them to end consumers in European
markets under short-term contracts. The parties discussed the
possibilities of Azerbaijani projects to participate in future
tenders under the H2Global mechanism, eligibility criteria for
potential projects, as well as the impact of long-term hydrogen
purchase contracts on project financing and investment
decision-making.
Moreover, the meeting emphasized the importance of taking into
account certification and sustainability criteria, as well as
relevant regulatory requirements of the European Union from the
initial stages of projects in terms of access of hydrogen projects
to international markets. The parties also discussed possible
cooperation opportunities in the areas of hydrogen market
development, knowledge and experience exchange, capacity building
and institutional cooperation.
During the meeting, information was provided on the work carried
out in the country to develop clean hydrogen production, as well as
the work carried out within the framework of the preparation of the
"Implementation plan of the national strategic review document on
hydrogen of Azerbaijan" on the identification of legislation and
incentive measures.
The meeting was important in terms of studying the potential
participation of Azerbaijan in international clean hydrogen
markets, strengthening the country's position as a potential
supplier of clean hydrogen and its derivatives in the future, and
studying advanced international experience in this field.
Azerbaijan is implementing large-scale projects to increase
electricity generation and diversify its energy system. The
development of renewable energy sources is one of the key
priorities of the country’s energy strategy.
Large-scale investment projects to build solar and wind power
plants are currently being implemented with bp, Masdar, ACWA Power,
China Gezhouba Group Overseas Investment, SOCAR Green, and other
partners. Once completed, these projects are expected to add
thousands of megawatts of new generation capacity to Azerbaijan’s
energy system in the coming years, reducing domestic demand for
natural gas and allowing more gas to be exported.
Meanwhile, according to Azerbaijani Energy Minister Parviz
Shahbazov, the share of renewable energy sources in the country’s
energy mix is expected to reach about 43% by 2035 as a result of
these projects.
The minister said Azerbaijan is implementing strategic projects
aimed at establishing a new energy and investment platform between
Central Asia and neighboring regions. One of the key initiatives,
he said, is the Central Asia-Azerbaijan Green Energy Corridor
project.
“The creation of a Trans-Caspian energy corridor connecting the
electricity systems of Azerbaijan, Kazakhstan and Uzbekistan is
part of our countries’ strategic vision. This project also creates
broad opportunities for developing the Middle Corridor, which will
serve as a green energy bridge between Europe, Asia and China via
the Caspian Sea,” Shahbazov emphasized.
According to the minister, the Green Corridor Alliance joint
venture based in Baku is already operating and coordinating
feasibility studies financed by the Asian Development Bank and the
EBRD.
Meanwhile, intensive work is continuing on the Caspian-Black
Sea-Europe Green Energy Corridor, the Azerbaijan-Türkiye-Europe and
Azerbaijan-Georgia-Türkiye-Bulgaria electricity
interconnectors.
Shahbazov said green energy corridors are shaping the
geoeconomic map of the future and that these initiatives will
stimulate not only energy exports but also the development of
digital connectivity, fiber-optic infrastructure and regional
economic cooperation.
AREA Director Javid Abdullayev told Trend in an exclusive
interview that Azerbaijan is playing an increasingly important role
in establishing a green energy bridge between Europe and Central
Asia.
“Azerbaijan is no longer only an exporter of energy resources
but is also one of the initiators of regional energy connectivity
and green energy corridors. The wind and solar projects currently
underway will not only strengthen the country’s energy security but
also significantly increase its electricity export potential,”
Abdullayev emphasized.
According to him, the Caspian Sea’s substantial wind potential,
the development of new electricity transmission lines and
initiatives such as the Caspian-Black Sea-Europe Green Energy
Corridor will further strengthen Azerbaijan’s role in Europe’s
energy security.
“Green energy projects will not only generate additional export
revenues for the country but also help optimize the domestic energy
balance, reduce natural gas consumption and enable more gas to be
directed to foreign markets,” he added.
