EBRD, ACWA Power, and Uzkimyosanoat Join Forces to Launch Central Asia’s First Renewable Hydrogen Facility in Uzbekistan

EBRD, ACWA Power, and Uzkimyosanoat Join Forces to Launch Central Asia’s First Renewable Hydrogen Facility in Uzbekistan

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has announced a significant investment in Uzbekistan’s first renewable hydrogen facility, marking a pioneering effort in Central Asia’s transition to greener energy sources. The project, developed in partnership with ACWA Power and Uzkimyosanoat, will involve the construction of a 20 MW electrolyser and a 52 MW wind power plant. This initiative aims to decarbonize Uzbekistan’s fertiliser production and power generation sectors by replacing grey hydrogen, derived from natural gas, with renewable hydrogen. The EBRD’s financial package, amounting to $65 million, includes a $55 million senior loan and $10 million in concessional finance provided by Canada under the High Impact Partnership on Climate Action (HIPCA). Once operational, the facility is expected to produce 3,000 tonnes of renewable hydrogen annually, significantly reducing CO2 emissions by approximately 22,000 tonnes each year. The project represents EBRD’s second renewable hydrogen investment, following a similar initiative in Egypt, and underscores Uzbekistan’s growing role as a leader in Central Asia’s green energy transition.

(PRESS RELEASE) LONDON, 28-Aug-2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) has announced its support for the development of Central Asia’s inaugural renewable hydrogen production facility in Uzbekistan. This pioneering initiative aims to revolutionize the country’s fertiliser production and power generation sectors by introducing cleaner, sustainable energy solutions.

The EBRD is providing a substantial financial package totaling $65 million (€58 million) to ACWA Power UKS Green H2, a joint venture between ACWA Power, a global leader in power generation and desalinated water production, and Uzkimyosanoat (UKS), a key player in Uzbekistan’s chemical industry. The funding will support the development, design, construction, and operation of a 20 MW electrolyser and a 52 MW greenfield wind power plant, both integral components of the renewable hydrogen facility.

The financial package includes a $55 million (€49 million) senior loan from the EBRD, complemented by an additional $10 million (€9 million) in concessional finance from Canada through the Special Fund for the High Impact Partnership on Climate Action (HIPCA). The EBRD is also considering providing an equity bridge loan of up to $5.5 million (€4.9 million) for the project.

“This groundbreaking project represents a significant step towards decarbonizing one of the most carbon-intensive regions in the world. We are proud to partner with ACWA Power and Uzkimyosanoat to bring this innovative renewable hydrogen facility to life,” said Nandita Parshad, Managing Director of the Sustainable Infrastructure Group at EBRD.

The facility, which is expected to produce up to 3,000 tonnes of renewable hydrogen annually, will replace the conventional grey hydrogen currently used in Uzbekistan’s ammonia fertiliser production. This shift is anticipated to reduce CO2 emissions by approximately 22,000 tonnes per year, contributing to the global effort to combat climate change.

The project, supported by HIPCA and backed by contributions from countries including Austria, Canada, Finland, the Netherlands, South Korea, Spain, Switzerland, Taiwan, the United Kingdom, and the United States, marks a major milestone in Central Asia’s transition to sustainable energy.

Uzbekistan has been the largest recipient of EBRD funding in Central Asia for four consecutive years, with a total of approximately €5.0 billion invested in 164 projects, primarily aimed at supporting private entrepreneurship.

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SOURCE: EBRD