BAKU, Azerbaijan, May 14. The European Bank for Reconstruction and Development (EBRD) made two important decisions this week in relation to Azerbaijan’s energy sector. It allocated a loan in the amount of 10 million euros for the introduction of smart waste collection and route optimization systems in Azerbaijan’s Ganja city. New types of containers, expansion of the existing fleet and the introduction of more environmentally friendly vehicles will be provided under the agreement, which will significantly reduce the carbon footprint of municipal services of the city. The agreement will also pave the way for a follow-on project that will complete the solid waste management improvements by way of a new modern regional sanitary landfill.
Moreover, EBRD decided to allocate a loan of $51 million to Masdar Azerbaijan Energy company for the construction of the Garadagh solar power plant [Azerbaijan’s Alat settlement] with an installed capacity of 230 MW.
EU made important remarks regarding energy cooperation with Azerbaijan. EU Ambassador to Azerbaijan Peter Michalko said that companies from the EU are very interested in implementing projects in Azerbaijan’s renewable energy sector. In regard with participation in the implementation of particular projects in the sector, the ambassador said that the auctions system will be very helpful for the development of renewable energy and bring more investments from abroad for the benefit of Azerbaijan. According to the ambassador, recently it was announced that the EU can mobilize up to 2 billion euros under this investment plan for Azerbaijan. This also includes the support for renewable energy sector. He also noted that the support that the EU is offering for Azerbaijani governmental institutions includes preparing legislative framework for “green” energy transition.
At the same time, Michalko pointed out that there are prospects for further increasing the supply of Azerbaijani gas to Europe. There are all opportunities to increase exports, in connection with which new steps can be taken. In addition, there is an interest of EU countries in increasing import of oil and gas from Azerbaijan, and the EU hopes to implement this in the near future.
Executive Director of German-Azerbaijani Chamber of Commerce (AHK Azerbaijan), Tobias Baumann said that he would like to invite more companies engaged in energy generating, renewable energy, and hydrogen generation. According to AHK executive director, the Chamber already plans on receiving a renewable energy delegation in June 2022.
Slovakian ambassador to Azerbaijan Milan Lajčiak said that his country has built all necessary gas pipeline interconnectors to get approach to the Southern Gas Corridor. But for real tapping into it, there is a necessity to complete the Greece-Bulgaria Gas Interconnector and to enlarge the transportation capacity of the Southern Gas Corridor, Then, it may be possible to start considering possible gas purchases of Azerbaijani gas through the Southern Gas Corridor to Slovakia.
Another highlight of the week is related to UEA-Azerbaijan discussions on energy. Minister of Energy of Azerbaijan Parviz Shahbazov met with General Director of UAE’s Masdar (Abu Dhabi Future Energy Company) Mohammed Jameel Al Ramahi within the framework of his visit to the UAE. The sides discussed issue of expanding cooperation in the implementation of new projects for the production of electricity from renewable energy sources. They focused on investment projects that are planned to be implemented in Azerbaijan’s renewable energy sphere, the possibility of cooperation in the production and export of electricity, natural gas and in energy efficiency sphere.
Petkim petrochemical complex of Azerbaijan’s state oil company SOCAR in Turkey detailed its sustainability strategy.
It plans to implement energy efficiency and electrification initiatives to decrease CO2 emission by 1 percent per annum and carbon intensity by 1 percent from 2021 to 2025. In the mid-term, from 2025 through 2030, it is planned to develop internal carbon pricing approach for future investments to effectively integrate decarbonization aspiration and mitigate risks caused by potential regulations. In the long terms, from 2030 onwards, Petkim is expected to achieve long term decarbonization targets for decreased emissions: 40 percent reduction by 2035 for Scope 1 & 2; Net zero by 2050 for Scope 1 & 2; 50 percent reduction in carbon intensity for Scope 3 by 2050.
SOCAR completed main phase of Azerikimya's plant modernization project. The main phase of the project of the State Oil Company of Azerbaijan (SOCAR) for large-scale modernization and reconstruction of the Ethylene-Polyethylene Plant under Azerikimya Production Association has been successfully completed. The ethylene-polyethylene plant of the Azerikimya Production Union (PU) of the State Oil Company of Azerbaijan (SOCAR) will resume its operations from May 16. The Azerikimya Production Association plans to complete full automation of production in the first quarter of 2023.
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