IRENA Publishes Report on Green Hydrogen Sector in Azerbaijan

The International Renewable Energy Agency (IRENA) has published a report titled "Green Hydrogen for Industrial Decarbonisation: Central Asia and the South Caucasus".

The report provides information on the current state of the green hydrogen sector, development opportunities, and challenges in Central Asian and South Caucasian countries.

The report highlights that Azerbaijan, the second largest residual fuel producer in the region, is actively developing its renewable energy sector. It covers Azerbaijan's renewable energy targets, potential, and ongoing projects, including initiatives with foreign investors, the Central Asia–Azerbaijan–Europe and Caspian–Black Sea–Europe Green Energy Corridors, and offshore wind energy projects.

According to the report, Azerbaijan has signed agreements on green hydrogen initiatives with foreign investors such as Masdar and ACWA Power. Azerbaijan has also begun studying its green hydrogen potential with support from the European Bank for Reconstruction and Development. A National Hydrogen Strategic Vision document was also published during COP29.

Azerbaijan has refining capacities and ammonia and methanol production infrastructure, positioning the country for significant green hydrogen demand. Existing ammonia and fertiliser facilities create a foundation for green ammonia projects, which could decarbonise existing ammonia plants and export surplus production. The country's annual demand of 1.6 Mt of ammonia would require 0.29 Mt of green hydrogen per year to produce green ammonia. Additionally, green hydrogen could be used for grid balancing in Azerbaijan.