Saudi government-affiliated developer Acwa Power has signed a heads of terms agreement with Uzbekistan’s energy ministry and state-owned chemical company Uzkimyosanoat to develop green hydrogen-to-ammonia projects in the country.

The first 3,000t/yr project will be an integrated green hydrogen facility connected to an existing ammonia plant in Chirchiq. Acwa plans to accelerate development in order to bring the project online in December 2024.

Acwa will also undertake a feasibility study—to be completed in 2024—for the development of a second 500,000t/yr green ammonia facility.

3,000t/yr – Green hydrogen production capacity at planned Chirchiq project

Tashkent has sought to attract foreign investors into its energy industry amid declining oil production and a target to increase the share of renewables in electricity supply to 25pc by 2030. Foreign direct investment has tripled since 2015, to reach $1.7bn in 2021, with a large proportion going toward green development, according to Uzbekistan’s deputy energy minister in an interview with Petroleum Economist.

Acwa has five existing Uzbek energy projects in its portfolio, including four windfarms. And the developer claims the country is the second-largest in terms of value outside of its home market of Saudi Arabia.

“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,” says Uzbekistan’s energy minister Jurabek Mirzamahmudov.

This week, Acwa also signed a memorandum of understanding with Austrian electricity supplier Verbund to jointly explore the development of green hydrogen projects in the Middle East with an eye on exports to Europe for use in power generation.

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Author: Polly Martin