First 'Green' Hydrogen Plant in Central Asia: Major Project in Chirchik
Key Ideas
- Uzbekistan plans to build a 'green' hydrogen production plant in Chirchik by the end of the year, financed by an agreement with the EBRD and ACWA Power.
- The project, costing $88 million, will be the first of its kind in Central Asia and the CIS, producing hydrogen through electrolysis for ammonia and nitrogen fertilizer production.
- The plant is expected to save 33 million cubic meters of natural gas annually and produce up to 500,000 tons of ammonium nitrate, enhancing sustainability and reducing reliance on fossil fuels.
- ACWA-UKS GH2, a joint venture between ACWA Power and UzKimyoSanoat, will manage the project, with ACWA holding 80% share and UzKimyoSanoat holding 20%.
In Chirchik, Uzbekistan, plans are underway to construct a groundbreaking 'green' hydrogen production plant by the end of the year. This initiative is the result of an agreement between UzKimyoSanoat, ACWA Power, and the European Bank for Reconstruction and Development (EBRD). The EBRD will provide a $65 million loan, $5.5 million of which will be an Equity Bridge Loan to ACWA Power UKS Green H2. The project aims to produce 'green' hydrogen through electrolysis, with the plant becoming the first of its kind in Central Asia and the CIS regions, marking a significant step towards sustainable energy practices. The joint venture ACWA-UKS GH2 will oversee the project, with ACWA holding 80% and UzKimyoSanoat holding 20% ownership. The plant's estimated $88 million cost is anticipated to lead to the annual production of 500,000 tons of ammonium nitrate, aiding in the reduction of natural gas consumption by 33 million cubic meters. This venture signifies a positive progression towards green energy and sustainable manufacturing practices in Uzbekistan.