According to Vladimir Rogov, Managing Director and Partner of the Boston Consulting Group (BCG), Azerbaijan could provide hydrogen to Europe at a reasonable price.

“In Azerbaijan, we see a unique combination of all components needed for the development of the hydrogen sector. There are natural resources, infrastructure, and the end-consumer. And all this in a compact geography. The potential of Azerbaijan’s renewable energy resources is extremely high, ensuring a strong competitive advantage, namely, the low cost of green hydrogen production,” he said.

According to Rogov, who cited the World Solar Atlas, Azerbaijan’s solar generating potential is comparable to the south of Italy and is over 1.5 times bigger than Germany’s, and the Absheron Peninsula’s wind potential is comparable to the North Sea shelf areas.

“In terms of profits, the country could earn from $230-500 million per year, given the expected hydrogen price decrease in Europe nearly twice, from current ±$11 to $5.8/kg. Thus, the full cost of the green hydrogen delivered through the pipe can be very competitive and allow for substantial margin,” said the expert.

Compared to exports from sub-Saharan Africa or the incredibly inefficient transport of liquefied hydrogen from abroad, he thinks that Azerbaijan’s ability to transport hydrogen, up to 10-15 percent of the flow, relatively efficiently and affordably along existing gas pipeline networks to Europe is another significant advantage.