Saudi Arabia’s ACWA Power, in collaboration with Uzbekistan’s Uzkemyoasat and the National Power Grid, has inked hydrogen and power purchase agreements totaling $100 million.
The hydrogen off-take capacity will reach 3,000 tonnes per year, while renewable energy capacity will range from 52-100 megawatts (MW), as confirmed in a statement to the Saudi stock exchange.
Under the terms of the agreements, the hydrogen and power purchase contracts will remain valid for 15 and 25 years, respectively. ACWA Power will be responsible for the entire project lifecycle, encompassing development, construction, and operation.
This latest development follows ACWA Power’s previous milestone in March, where it sealed three power purchase and investment agreements with Uzbekistan, focusing on the establishment of solar and battery storage projects. The combined value of these ventures amounts to an impressive $2.5 billion.
ACWA Power, backed by Saudi Arabia’s Public Investment Fund (PIF), continues to demonstrate its commitment to expanding its renewable energy portfolio and strengthening its position as a key player in the global energy transition.
The collaboration between ACWA Power and Uzbekistan’s state-owned entities signifies a significant step towards establishing a sustainable and diversified energy landscape in Uzbekistan. By leveraging the potential of hydrogen and renewable energy sources, Uzbekistan aims to reduce its carbon footprint, enhance energy security, and stimulate economic growth through the development of clean energy projects.
The hydrogen and power purchase agreements hold immense potential in transforming Uzbekistan’s energy sector. The utilization of hydrogen as a clean fuel can contribute to decarbonizing various industries, including transportation, while bolstering the country’s energy independence and reducing reliance on traditional fossil fuels.
With ACWA Power’s extensive experience in developing and operating renewable energy projects globally, including solar, wind, and desalination, the company is well-positioned to support Uzbekistan in achieving its sustainable energy goals.
The agreements not only facilitate the exchange of technical knowledge and expertise between Saudi Arabia and Uzbekistan but also pave the way for significant investment inflows, job creation, and the development of a robust clean energy infrastructure.
ACWA Power’s endeavors in Uzbekistan align with the broader global trend of accelerating the adoption of renewable energy and hydrogen as key pillars of a sustainable future. As countries strive to reduce greenhouse gas emissions and combat climate change, partnerships such as this one exemplify the collaborative efforts required to address the energy and environmental challenges of the 21st century.