According to Kamran Huseynov, deputy director of Azerbaijan’s State Agency on Alternative and Renewable Energy Sources, an interdepartmental working group on hydrogen has been formed to conduct research and develop recommendations for the production of hydrogen in the nation.
He said it during a panel discussion with the title “Hydrogen as a Tool for the Transition to Clean Energy” held as a part of the seminar “Green Hydrogen: Road to Decarbonization”.
The official mentioned that the working group and the European Bank for Development and Reconstruction (EBRD) worked together to create a paper titled “Assessment of Potential for a Low-Carbon Hydrogen Economy in Azerbaijan”. As a result, he said, a kick-off meeting with a consultant chosen by the EBRD was held in January of last year, during which interested parties were given a project proposal.
Azerbaijan is also drafting four other pieces of legislation for the draft law on electricity production, according to Huseynov.
These concern the issue of certificates for producing renewable energy, enabling mechanisms for the engagement of active producers, and information systems for renewable energy sources. The Cabinet of Ministers is now approving these bills, which have been written, he said.
The deputy director further emphasized that given the comparatively low cost of renewable energy production, leveling the cost of green hydrogen (LCOH) in Azerbaijan can be competitive with other markets. He continued by saying that hydrogen combined with natural gas may be sent to energy markets via the Southern Gas Corridor.
The official said that an independent H2 pipeline could be another choice for supplying green hydrogen.
“Green hydrogen and ammonia production and export can also be taken into consideration as a possibility, taking into account rail and pipeline connections with other countries,” Huseynov said.
Azerbaijan Renewable Energy Agency was founded in accordance with a presidential decree dated September 22, 2020, the agency spokesman emphasized.
He emphasized that the agency’s key goals were to turn the liberated areas into a “Green Energy” Zone, boost the share of renewable energy sources in installed power generation capacity to 30 percent by 2030, and assure private sector involvement.
Javid Abdullayev, Director of the Azerbaijan Renewable Energy Agency (AREA) under the Energy Ministry, stressed during his speech at the event that Azerbaijan has a production capacity for green energy of over 200 GW.
Abdullayev continued by mentioning that Azerbaijan wants to generate 30% of its electricity from renewable sources by 2030.
“Up to four gigawatts of green energy can be supplied to Europe under the deal inked last December between Azerbaijan, Georgia, Hungary, and Romania,” the official stated.
Murad Sadikhov, the director of Masdar Azerbaijan, added that the company intends to carry out a number of projects in Azerbaijan.
He specifically mentioned the company’s goals to deploy 1 GW of onshore wind power by 2026, 2 GW of offshore wind power by 2033, 1 GW of green hydrogen power by 2037, and even more solar, onshore wind, and offshore wind power.
“Masdar and the Energy Ministry of Azerbaijan inked a contract in 2022 about the growth and financing of renewable energy sources. Additionally in 2022, the parties inked a contract for the production of green hydrogen and a number of offshore wind energy projects.
He also mentioned that the business and SOCAR had inked a contract to investigate the possibility of using offshore wind energy to electrify SOCAR’s offshore oil and gas installations in the Caspian Sea.
