BAKU, Azerbaijan, December 2. Azerbaijan has capabilities to produce green and blue hydrogen at cost-effective rates, Rolande Pryce, WB Regional Director for South Caucasus, told Trend.
“I have already mentioned that Azerbaijan has tremendous potential, particularly in terms of abundant solar and wind resources. This implies a significant capability to produce green and blue hydrogen at cost-effective rates. We anticipate witnessing this development in the mid-2030s,” she said.
The regional director pointed out that this is a relatively new field, with emerging technologies.
“What's noteworthy is the government's proactive engagement with private sector stakeholders to discuss the development of this sector. Typically, the private sector leads in terms of technological advancements, making this collaboration advantageous,” Pryce noted.
In terms of the potential next steps from the bank's perspective, the WB recommends conducting a comprehensive study to evaluate the feasibility of developing green energy exports, she said.
“This study should outline a specific roadmap, delineate the role of the government with the intention of minimizing it to incentivize external participation without the government bearing the entire investment burden. Additionally, examining the prospects for a domestic hydrogen industry and potential domestic hydrogen markets in transportation, industries, and heating is crucial. These areas present opportunities that we aim to explore. However, at the bank, we prefer not to proceed without a thorough understanding of the situation on the ground,” the regional director explained.
The WB’s suggestion for the Azerbaijan is to undertake a study of this nature, conducting thorough research, and using the findings as the foundation to identify necessary investments and reforms that could facilitate the further development of the sector, Pryce concluded.
Meanwhile, on December 15, 2022, Azerbaijan’s Ministry of Energy and the Australian Fortescue Future Industries (FFI) inked an agreement for joint cooperation in the exploration and development of renewable energy and green hydrogen ventures in Azerbaijan. This agreement encompasses research and the execution of renewable energy and green hydrogen projects, with a combined capacity of up to 12 GW in Azerbaijan.