BAKU, Azerbaijan, November 29. Azerbaijan, endowed with significant offshore wind potential, could become a major player in the production of clean gas and green hydrogen derived from renewable energy sources, Trend reports via the World Bank.
According to findings from the Green Energy Scenario (GES), Azerbaijan has the capacity to export an impressive 50 terawatt-hours (TWh) of green hydrogen annually by the year 2060. This forecast anticipates a remarkable 15 percent surge in energy exports, measured in terms of energy content, compared to the current National Zero Strategy (NZS).
“It is hard to predict how fast the technologies for the production of synthetic methane, green hydrogen, and other low-carbon carriers will evolve over the next decades and what levels the global demand for these fuels will reach. Over the next few years, Azerbaijan should therefore continue monitoring the technological developments and market trends while laying the groundwork for the development of value chains for low-carbon energy carriers,” said the WB in its latest report.
This will include:
(a) Identifying infrastructure needs for the expansion of the existing energy network, such as international power transmission interconnections like the Black Sea submarine cable and gas pipelines capable of accommodating increasing levels of low-carbon energy carriers.
(b) Developing the necessary human capital to support the clean energy transition, focusing on the deployment of clean gas and green hydrogen technologies. This includes training engineers, specialized construction workers, and technicians.
(c) Initiating selected pilot investments that target the most promising technologies, with fair risk-sharing mechanisms between the public and private sectors. The government has already initiated discussions with private sector players active in renewable energy to jumpstart hydrogen development.
However, a detailed study is recommended to assess the potential for the development of green energy exports, define the government's role, and explore prospects for a domestic hydrogen industry and hydrogen markets in electrified transport, industries, and heating. Plans to investigate hydrogen production and utilization potential, along with the development of pilot projects, are outlined in the 2022–2026 Strategic Energy Development Strategy (SEDS), specifically under Activity 5.2.5 focusing on expanding the use of environmentally friendly transport and other green technologies for climate action.
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