BAKU, Azerbaijan, August 18. Uzbekistan and Saudi Arabia’s ACWA Power company have signed three major energy agreements, worth a total of $12 billion, Trend reports via the Ministry of Energy of Uzbekistan.
The agreements were signed during the state visit to Saudi Arabia, by Uzbekistan’s President, Shavkat Mirziyoyev, which took place today.
The three agreements comprise:
- A Heads of Terms agreement to develop a 1.5GW wind farm in the Karakalpakstan region of Uzbekistan;
- A plan for investment in green hydrogen, in Uzbekistan, in collaboration with New York Stock Exchange-listed, Air Products - a global leader in industrial gases;
- A $10 billion Investment Cooperation Agreement (“ICA”) to jointly develop gas-to-power, renewable energy, and green hydrogen projects in Uzbekistan.
The 1.5GW Karakalpakstan wind project, located in north-western Uzbekistan, will be the biggest single-site onshore wind project in the world. The Heads of Terms agreement signed between ACWA Power and Uzbekistan’s Ministry of Energy and Ministry of Investment and Foreign Trade is a foundation for a Power Purchase Agreement and an Investment Agreement, to be initiated for the facility.
The project is expected to achieve a financial close by the end of 2023 and be fully commissioned by the first quarter of 2026. When complete, it will contribute 19 percent to Uzbekistan’s overall renewable energy goals. It will also power 1.65 million households and offset 2.4 million tones of carbon emissions per year.
Acknowledging the importance of green hydrogen generation to the vision of President Shavkat Mirziyoyev, Uzbekistan’s Ministry of Energy, ACWA Power, and Air Products are also planning investment in this area. This agreement follows a memorandum of understanding signed during the visit of a Saudi Arabian delegation to Uzbekistan in January 2021.
The ICA was signed between Uzbekistan’s Ministry of Energy, Ministry of Investment and Foreign Trade, and ACWA Power. All parties will collaborate to develop projects in gas-to-power, wind, hydroelectric, and green hydrogen projects valued at $10 billion over a five-year period, starting in 2023.
The initiatives will materially contribute to Uzbekistan’s long-term strategy to diversify its energy mix, as it targets 8 GW and 12 GW of solar and wind capacity by 2026 and 2030, respectively.