EBRD helps Azerbaijan prepare hydrogen strategy

Experts from the European Bank for Reconstruction and Development (EBRD), together with representatives of the ministries of energy and economy of Azerbaijan, are developing the country’s Hydrogen Strategy, which can be presented early next year, Deputy Energy Minister Elnur Soltanov told Report.

Hydrogen is an environmentally friendly fuel, its production and use are aimed, first of all, by countries deprived of oil, gas, coal (non-renewable energy sources), as well as states, including Azerbaijan, concerned about global warming and its irreversible consequences for humanity.

Azerbaijan participates in the international Paris climate agreement (reduction of greenhouse gas emissions) and tries to follow the green agenda.

The total carbon dioxide emissions in Azerbaijan in 2020 were equivalent to 34 million tons (more than 60% of the total greenhouse gas emissions in the country), methane is in second place (about 31-32% of the total greenhouse gas emissions in the country, with almost 85% in the oil and gas sector).

The country has pledged to reduce CO2 emissions many times over, in particular through the implementation of the Hydrogen Strategy.

Elnur Soltanov noted that in Azerbaijan, there are three types of hydrogen - "gray", "blue" and "green", but it is "green" that will be given the main attention in the strategy, since it is the most environmentally friendly, albeit the most expensive type of fuel.

Many facilities of Azerenergy use natural gas supplied by SOCAR to generate electricity, and some volumes of "gray" hydrogen are formed during the conversion of methane in the production process. However, carbon dioxide is released during the chemical reaction, and this is a negative side effect comparable to greenhouse gas emissions, and Azerbaijan is trying to minimize it.

SOCAR itself is consulting with European companies experienced in the production and transportation of hydrogen, and is considering the possibility of producing only "blue" hydrogen from fossil fuels through the steam reforming of methane and natural gas, in which the greenhouse gas - carbon dioxide - is captured and pumped into gas storage facilities.

SOCAR has embarked on this path because it is increasing gas production and export, has long-term (for 25 years) contracts for the gas supply to Europe and reduces greenhouse gas emissions (carbon dioxide and methane) under international commitments.

Also, the EU calls on all companies or consortiums transporting gas to Europe to explore the possibility of adding hydrogen to it (from 5% to 20% in a mixture in the pipeline), and SOCAR is discussing this issue with its partners in the Trans Adriatic Pipeline (TAP).

The Ministry of Energy of Azerbaijan, together with Arab and other foreign companies and EBRD experts, is discussing the profitability of producing "green" hydrogen in the country. If the electricity for electrolysis during its production comes from renewable energy sources (RES), there will be no greenhouse gas emissions.

“We already have two large renewable energy projects (with ACWA and with Masdar), and there will be surplus energy that can be directed to the production of "green" hydrogen. In addition, a program for the construction of wind parks in the Caspian Sea is being prepared, and it will so large that it will also be possible to produce "green" hydrogen. All points will be reflected in detail in the Hydrogen Strategy of Azerbaijan,” Soltanov said.

E.L.