Fostering Green Energy: Innovative Hydrogen Production Project in Uzbekistan
Key Ideas
- A senior secured loan of US$55.4 million will finance the construction of a 20 MW electrolyser and a 52 MW wind power plant in Uzbekistan, producing 3,000 tonnes of renewable hydrogen annually.
- The project aims to support the first renewable hydrogen production project in Uzbekistan, decarbonize the ammonia sector, and increase renewable energy generation.
- EBRD's involvement in the project is essential for providing long-term financing and mitigating risks, focusing on green energy sector development and gender-responsive practices.
- The project's environmental and social impact assessment includes biodiversity data, cumulative impacts, and mitigation measures for the wind power plant expansion and electrolyser plant.
The project in Uzbekistan involves the provision of a senior secured loan to finance the construction of an integrated renewable hydrogen production facility. This facility will consist of a 20 MW electrolyser and a 52 MW wind power plant, aiming to produce around 3,000 tonnes of renewable hydrogen annually. The electrolyser will be located in Chirchiq City, Tashkent region, while the wind power plant will be in Gijduvon district, Bukhara region. The project's objectives include supporting the first renewable hydrogen production project in Uzbekistan and Central Asia, decarbonizing Uzbekistan's ammonia sector, and increasing renewable energy generation. The transition impact of the project is significant, with a focus on green energy sector development and inclusive practices. ACWA POWER UKS GREEN H2 LLC JV is the borrower, owned by ACWA Power Company and Joint Stock Company UzKimyoSanoat. The project's total cost is USD 36,611,549, with EBRD providing USD 21,154,547 in financing. The project's environmental and social impact assessment categorizes it as Category A due to its association with a Bank-financed wind power project and various sensitivities. The assessment includes biodiversity data, cumulative impacts, and mitigation measures. EBRD's involvement adds value through long-term financing, risk mitigation, and standard-setting initiatives focused on the green energy sector's development and gender-responsive practices.
Topics
Production
Renewable Energy
Sustainable Development
Green Energy Sector
Project Finance
Environmental Assessment
Transition Impact
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