Petr Binhack: Czechia could become hydrogen 'crossroads' for TAP in EU – INTERVIEW

The energy transformation of the European Union requires not only diversification of supply sources, but also a profound modernization of the entire infrastructural and technological architecture of the energy system. Amid a changing geopolitical reality, Azerbaijan has been consistently strengthening its status as one of the EU's key partners, developing both exports of traditional hydrocarbons and projects in the field of renewable energy.

The outcomes of the 12th ministerial meeting of the Southern Gas Corridor Advisory Council and the 4th ministerial meeting within the framework of the Green Energy Advisory Council in Baku confirmed that the Caspian region is gradually becoming an important element of the emerging system of Europe's energy resilience.

In an interview with Report, Petr Binhack, Deputy Director General of the Energy Section at the Ministry of Industry and Trade of the Czech Republic, spoke about how the Czech Republic assesses the prospects for direct supplies of Azerbaijani gas, the opportunities opening up for Czech companies in green transition projects, as well as Prague's role in shaping new energy and technological links between Europe and the Caspian region.

We present the interview to our readers:

- In 2024-2025, you repeatedly emphasized the Czech Republic's intention to begin direct imports of Azerbaijani gas. At what stage are the negotiations with SOCAR and European operators currently regarding specific routes and potential supply volumes for 2026?

The Czech Republic continues to follow developments concerning southern supply routes to Central Europe. At this stage, discussions on potential gas flows depend primarily on commercial negotiations between market participants and on the regulatory and tariff framework along the transit routes. Ensuring transparent, EU-compliant and economically viable transit conditions remains a key prerequisite for any future arrangements.

- Is the Czech Republic considering the use of capacities of the so-called Vertical Gas Corridor via Bulgaria and Romania, or does priority still lie with the expansion of southern routes via Italy and Austria?

Both options are on the table as they are of strategic interest and as we have the experience of being dependent on the sole transit route. Current problem of the Vertical Corridor is the fragmentation of transit tariffs and EU compliance issues on the bundled tariff, however, in case these issues get solved, having simple option for all gas transit through this route will make it more attractive for other parties.

- Today, Azerbaijan already supplies more than 25% of the Czech Republic's oil demand. Is an increase in these volumes expected in 2026 following the completion of the TAL pipeline modernization?

- Modernized TAL Plus is operated by MERO on behalf of Czechia, and the pipeline currently covers all Czech oil consumption, however refineries in Czechia are owned by PKN Orlen, thus possible increase in oil imports would be in line with their increased demand.

- You have described Azerbaijan as a promising partner in the field of renewable energy. How does Prague assess Baku's ambitious goal of increasing the share of green energy to 40% by 2030? Is the Caspian region viewed as a potential source of clean energy exports to Central Europe?

- Azerbaijan's ambitions in green energy are impressive, in Europe renewable energy is mainly perceived in two closely intertwined dimensions - sustainability of energy sector and energy security, having an aligned and reliable partner represents a strategic interest.

However, partnership between the EU and whole Caspian region can go beyond that in the future as we see signals from Central Asian countries intention to establish their own value chains, which the EU industry is interested in. Caspian region has a role in this transformation.

The Czech Republic positively assesses Azerbaijan's ambition to significantly increase the share of renewable energy and diversify its energy mix. The objective of adding 6.5 GW of new renewable capacity by 2030, across solar, wind and hydropower projects, demonstrates a clear strategic commitment to green transformation. Given Azerbaijan's strong natural conditions, particularly in solar and offshore wind, this ambition is both credible and promising.

From a European perspective, renewable energy is closely linked to both sustainability and long-term energy security. In this regard, initiatives such as the Green Energy Corridor, aiming to connect Central Asia through the South Caucasus and Türkiye to the EU electricity market, are followed with interest. Strengthening regional electricity interconnections and integration with European transmission networks could, in the long term, contribute to greater system resilience and diversification.

- In 2021, an agreement on energy cooperation was signed between our countries. Which specific solar or wind energy projects are currently under joint consideration or in preparation for implementation?

- We see significant potential for practical cooperation. Czech companies are ready to contribute in areas such as engineering services, high-quality equipment manufacturing, hydropower components including turbines, grid modernization, smart energy systems and energy storage solutions. We are also open to sharing our experience in renewable technologies, bioenergy, waste-to-energy solutions and hydrogen value chains.

- Beyond hydrocarbon supplies, which areas of energy cooperation does the Czech Republic consider a priority? Are these related to the digitalization of energy grids, energy storage systems (ESS), or improving energy efficiency in industry? Is Czech participation in the development of a hydrogen corridor from the Caspian Sea to the EU being discussed, taking into account TAP AG's research in this area?

- All the elements stated above have their role and form one larger whole – securing safe, affordable and sustainable energy for consumers, thus ensuring competitive industry and therefore ultimately a prosperous economy. Given the geographical location of the Czech Republic, it can play a role as a hydrogen crossroad in the EU and while there is long industrial history in the country, low carbon and green hydrogen is a way how to transform domestic industrial sector.

Beyond hydrocarbons, the Czech Republic considers renewable energy and modern technologies among the most promising areas of bilateral cooperation. We have also emphasised the important role of Azerbaijan in global energy security as a reliable partner in the diversification of gas and oil supplies to the European Union.

Czech companies offer extensive expertise in renewable energy, energy efficiency improvements, as well as the adoption of smart, clean technologies. By sharing their advanced knowledge and innovative solutions, they can help Azerbaijan to expand its renewable energy capacity, modernise its infrastructure, and contribute to long-term energy sustainability and security.

- The Azerbaijan-Türkiye interconnector project via Nakhchivan opens up new opportunities for electricity exports to Europe. Does the Czech Republic see itself primarily as an end consumer of this electricity or as a technological partner in the construction of transmission lines? Are Czech manufacturers of substation and high-voltage grid equipment showing interest in such projects?

- The Czech Republic supports projects that contribute to the diversification of energy supplies and strengthening international energy connectivity. We see initiatives like the Azerbaijan–Türkiye interconnector project in a wider context, not only in terms of potential electricity flows, but also as an initiative that may create opportunities for technological cooperation and industrial involvement. Czech companies have long-standing expertise in power engineering, including high-voltage equipment, substations, and grid technologies, and they continue to follow developments in this field with interest. Where relevant, Czech companies stand ready to share their experience, expertise, and international know-how, laying the foundation for long-term, sustainable partnerships.

- Is the signing of new intergovernmental agreements expected in 2026 that could launch concrete infrastructure or investment projects involving Czech capital in Azerbaijan?

- We expect the 6th session of the Joint Commission on Economic, Scientific, Technical and Cultural Cooperation to take place in the near future, where priority sectors such as energy, transport and infrastructure are expected to feature prominently on the agenda. The meeting should serve as an important platform for identifying concrete projects and further strengthening economic ties between our two countries. In addition, senior members of the Czech Government are expected to visit Azerbaijan, which should help to bring greater clarity and a longer-term vision to the development of cooperation between our two countries, including opportunities for Czech companies to engage in infrastructure and investment projects.

- How does the Czech Republic generally view Azerbaijan"s role in the EU"s updated energy architecture-as a resource supplier, a transit hub, or a strategic partner in the energy transition?

- All the above. Azerbaijan has an undisputable role with its oil and gas extraction capacities. At the same time its geographic location, especially considering war in Ukraine, makes it a hub between Europe and Caspian region as Russia"s role diminished, while finally Europe takes note of ambitious goals that Azerbaijan sets in field of renewable energy.