The State Oil Company of Azerbaijan (SOCAR), in collaboration with China Energy, plans to begin decarbonizing offshore facilities, SOCAR Vice President Afgan Isayev said during the session on SOCAR's progress in decarbonization held within COP29.
According to Report, SOCAR Green and China Energy Overseas Investment Co. Ltd. signed an agreement to build a 160 MW solar power plant in the Fuzuli district. Memorandums on renewable energy development were also signed with China Energy and China Datang Co. Ltd.
According to Isayev, SOCAR recently started construction of the 240 MW Shafag solar power plant in the Jabrayil district with BP. This project will be an important step in decarbonizing the largest oil and gas terminal in the Caspian region - the Sangachal terminal.
"This is the first phase of our efforts to reduce carbon footprint. The second phase will focus on decarbonizing offshore facilities," he noted.
SOCAR has also launched cooperation in this direction with Abu Dhabi National Oil Company (ADNOC), which is one of the leaders of the Oil and Gas Decarbonization Charter.
Isayev emphasized that Azerbaijan has significant potential for geothermal energy development. SOCAR recently signed an agreement with Baker Hughes on geothermal resource development: "When drilling geothermal wells, we can find water above 120 degrees, suitable for power generation. If the temperature is lower, resources can be used for heating. We're just starting this journey and will conduct studies throughout the year to assess opportunities."
The SOCAR Vice President also announced plans to end associated gas flaring at the Baku Oil Refinery by 2026. A legally binding agreement was signed with Baker Hughes at COP29, he said.
"Eliminating associated gas flaring at our refinery will be an important achievement and a good start," Isayev noted.
According to him, SOCAR is also implementing renewable energy projects outside Azerbaijan. "In 2017, SOCAR Türkiye commissioned a 55 MW onshore wind power plant. In Georgia, Romania, and Switzerland, the company is transitioning energy supply from traditional sources to solar.
Even in Switzerland, we've started our first, albeit small, hydrogen project. We continue to learn and develop to be ready for new partnerships," Isayev emphasized.