Saudi developer breaks ground on first green hydrogen project in Uzbekistan
The facility in Chirchiq will provide feedstock for ammonia-based fertiliser production, while saving millions of cubic metres of fossil gas
Saudi renewables developer ACWA Power has started construction on its 3,000-tonnes-per-year green hydrogen project in Chirchiq, the first in Uzbekistan and Central Asia more widely.
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The first phase of the Chirchiq plant is being developed on an “accelerated development timeline”, the Saudi firm had announced at the beginning of the year, with commissioning scheduled for the end of 2024.
The developer— which is 50%-owned by Saudi sovereign wealth fund PIF — had in May signed a $88m, 15-year offtake contract for volumes from the Chirchiq plant with Uzbek state chemicals company Uzkimyosanoat.
Uzbekistan is currently one of the world’s largest gas producers, with the International Energy Agency estimating an output of 60 billion cubic meters every year. More than half of this is consumed domestically, with 85% of the country’s electricity generated from gas-fired power plants.
And amid a potential depletion of gas reserves over the next 20 years, the Uzbek government plans to completely halt exports by 2025 and instead direct its gas toward petrochemicals and domestic power generation.
ACWA is also building a 1.5GW gas-fired thermal power plant in Uzbekistan worth $1.1bn.
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