EBRD Drives Renewable Hydrogen Innovation in Uzbekistan
Key Ideas
- The EBRD is supporting a pilot renewable hydrogen facility in Uzbekistan to decarbonise fertiliser production and power generation.
- The financial package of US$ 65 million includes a senior loan, concessional finance from Canada, and equity bridge loan from the EBRD.
- The project aims to replace grey hydrogen with renewable hydrogen, reducing annual CO2 emissions by around 22,000 tonnes.
- This initiative is the second renewable hydrogen production project financed by the EBRD, following a similar project in Egypt in 2022.
The European Bank for Reconstruction and Development (EBRD) is enabling the establishment of the first renewable hydrogen project in Central Asia by supporting a pilot facility in Uzbekistan. This initiative is targeted at decarbonising fertiliser production and power generation in the country. The project involves the development of a 20 MW electrolyser and a 52 MW wind power plant, with a financial package totaling US$ 65 million, including funding from the EBRD and Canada's Special Fund for the High Impact Partnership on Climate Action (HIPCA). ACWA Power UKS Green H2, a special purpose company jointly owned by ACWA Power and Uzkimyosanoat, will oversee the development, design, construction, and operation of the facility. The facility aims to produce up to 3,000 tonnes of renewable hydrogen annually, contributing significantly to reducing CO2 emissions in the region. The project not only focuses on renewable energy production but also emphasizes international cooperation, as it is supported by the Japan-EBRD Cooperation Fund and various countries including Austria, Canada, Finland, and the United States. By replacing grey hydrogen with renewable hydrogen, this project aligns with global efforts to transition towards more sustainable and eco-friendly energy sources.