BAKU, Azerbaijan, August 24. The European Bank for Reconstruction and Development (EBRD) has been working with Azerbaijani authorities since 2022 to assess the potential for a low-carbon hydrogen economy in the country, Nataly Mouravidze, Head of EBRD operations in Azerbaijan, told Trend.
"The study showed that Azerbaijan is more than capable to produce renewable hydrogen, which can in turn support local decarbonization and provide cost-competitive renewable fuels to high-demand regions like the European Union," she said.
Talking about the next steps of this cooperation, Mouravidze noted that now, it is necessary to develop a national hydrogen strategy that prioritizes sustainable development laws and frameworks to incentivize the production of low-carbon hydrogen. In this regards, Azerbaijan will also need to align such strategy with relevant international laws and regulations.
"Afterwards, works could begin on expanding the renewable energy production and further developing the electricity grid, both in line with the future demand of course," she concluded.
Meanwhile, the study prepared by Advisian consulting company with the EBRD's support reveals that Azerbaijan is well positioned to develop both green and blue hydrogen.
"With abundant renewable resources in close proximity to the Caspian Sea and eastern Azerbaijan, as well as direct access to natural gas reserves in the Shah Deniz field, Azerbaijan is strategically positioned to develop and implement green and blue hydrogen technologies. Blue hydrogen efforts will necessitate investigating CO2 storage opportunities in depleted gas fields and addressing upstream emissions. The well-established natural gas infrastructure, such as the Southern Gas Corridor (SGC), could potentially facilitate hydrogen blending into the gas network for export purposes, further enhancing the country's hydrogen capabilities," the study said.