• Saudi company signs extensive head of terms agreements with Uzbek government to set up a green hydrogen facility and pilot project for a green ammonia

ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, has signed extensive heads of terms agreements to develop a green hydrogen facility and a green ammonia pilot project in the Republic of Uzbekistan with the country’s Ministry of Energy and Uzkimyosanoat, a state-owned chemical company.

These projects are the first of their kind in the Central Asian country.

“We value our collaboration with our long-standing partners, ACWA Power and Uzkimyonosat, and fully support the integration of green hydrogen and its derivatives, which will serve the energy vision of our country” Jurabek Mirzamahmudov, Minister of Energy of Uzbekistan.

“While we take pride in getting this initiative off the ground on fast-track basis, we aim to ensure our readiness and establish the right framework and policies that will serve as the foundation for accelerating the development of green hydrogen projects in the future” he added.

The first green hydrogen project will be an integrated facility and is set to be connected to an existing ammonia plant in Chirchiq, 45 kilometres from Tashkent, the country’s capital. The project is expected to generate 3,000 tonnes of green hydrogen a year. ACWA Power will oversee the full value chain of integration to this existing infrastructure project to green hydrogen, which is expected to improve the service factor of the facility and reduce its dependence on natural gas. The company has plans for an accelerated development timeline for this facility and is targeting a commissioning date of December 2024.

“We are delighted to be working alongside the Ministry of Energy and ACWA Power on this important project, which will assist in reducing carbon emissions in the chemical industry in Uzbekistan and contribute to the global effort to decarbonise. Uzkimyosanoat is fully committed to this initiative and is eager to progress swiftly” Korzhikov Evgeniy, Uzkimyosanoat.

“Uzbekistan has emerged as one of the most exciting growth countries for ACWA Power in recent years and is our biggest investment geography outside of KSA. We are proud that our giga scale development experience in green hydrogen is making us the preferred choice of partners across the world. As the world continues to grapple with increasing and devastating impact of climate change, the right solutions are the need of the hour. Green hydrogen is considered to be the fuel of the future and we are confident of applying our global expertise in accelerating the development of this vital source of clean energy for Uzbekistan. We are honoured to have committed, like-minded and collaborative partners in the Republic and we will be diligent in our role in providing the best counsel, talent, financing and integrated technological solutions to ensure a greener future for all Mohammad Abunayyan” ACWA Power Chairman.

The second project involves the development of a 500,000-tonne green ammonia feasibility study. Since this project will reduce Uzbekistan’s dependence on natural gas by 600 million cubic metres per year, it is expected to cut carbon dioxide emissions by 1.5 million tonnes annually. The study will conclude by the end of next year.

Aside from these green hydrogen and green ammonia projects, ACWA Power also has five existing projects in Uzbekistan, including four wind projects and a combined gas cycle turbine facility. The country is the second largest in terms of value for the company after its home market of Saudi Arabia.