Deputy minister: Azerbaijan has competitive advantage in production of blue hydrogen

Azerbaijan has competitive advantages in the production of blue hydrogen, Deputy Minister of Energy of Azerbaijan Elnur Soltanov said at the panel discussion "Azerbaijan: emerging gateway to green growth and connectivity" within the annual meeting of the European Bank for Reconstruction and Development (EBRD) in London.

Report quotes him as saying that in the context of the energy transition, electrons alone are not enough - molecules also play a key role.

“To be honest, we should not expect Azerbaijan to be at the forefront of the global hydrogen agenda. However, projects to create large-scale offshore wind farms have made us think seriously about hydrogen, especially green one. The fact is that energy storage systems remain extremely expensive. Green hydrogen, on the contrary, can act as both a form of storage and a commodity,” the deputy minister explained.

He noted that in case of excess generation of electricity from renewable energy sources, especially during periods of low demand, the surplus can be directed to the production of hydrogen, which avoids losses (curtailment). “This hydrogen can then be used to re-generate electricity during peak hours or exported in the form of ammonia or liquid hydrogen,” he added.

Soltanov emphasized that research in the field of hydrogen energy has already been conducted in Azerbaijan jointly with the EBRD. In particular, the country has a strong position in the production of blue hydrogen due to access to natural gas and the presence of depleted oil and gas fields suitable for carbon capture and storage (CCS technology).

“We already partially have the infrastructure for carbon capture and storage. But we consciously insist on developing green solutions because we want to keep up with global trends,” the deputy minister emphasized.

He also noted that the optimism regarding green hydrogen observed five years ago has noticeably decreased. However, in every research or consulting project initiated by the ministry, the hydrogen energy block remains mandatory.

“The potential of the Caspian Sea, our wind capabilities and the availability of pipeline and port infrastructure allow us to hope for the creation of a symbiotic energy ecosystem, where electrons and molecules will complement each other. This, in our opinion, is the key to a sustainable energy future for Azerbaijan,” Soltanov added.