ACWA Power, a leading developer, investor, and operator of power generation, water desalination, and green H₂ plants worldwide, has signed two significant agreements during the EBRD 2023 Annual Meeting and Business Forum in Samarkand that took place between 16 and 18 May 2023, marking a major milestone to advance Uzbekistan’s target to decarbonize 35% of its energy sector by 2030.

The first set of agreements entails a groundbreaking partnership with Uzkimyosanoat, the national holding company for chemicals in Uzbekistan, to decarbonize the sector through innovative green H₂ projects. Construction will be executed in two phases achieving substantial reductions in natural gas consumption and carbon dioxide (CO₂) emissions. The agreements were signed by Timur Mukhammedjanov, Chairman of the Board of Uzkimyosanoat; Sarvar Khamidov, Deputy Minister of the Ministry of Investment, Industry and Trade of the Republic of Uzbekistan; Sobirjon Artikov, Deputy Chairman of the National Electric Grid of the Republic of Uzbekistan (NEGU); and Marco Arcelli, Chief Executive Officer of ACWA Power.

The second set of agreements involves the signing of financing documents for Karatau wind farm, formerly referred to as the Nukus Wind Project, with a total investment value of $120 MM. The National Electric Grid of Uzbekistan (NEGU) will serve as the exclusive buyer of electricity generated by the project for 25 years. The Uzbek Ministry of Economy and Finance (MoEF) has provided support for the project through the Government Support Agreement (GSA). Project funding has been secured through Deutsche Investitions (DEG), the European Bank for Reconstruction and Development (EBRD), and Proparco. The financing agreements were signed by representatives of DEG, EBRD, Proparco, and Mr. Mohammad Abunayyan, Chairman of the Board of Directors of ACWA Power.

“We are excited about the limitless possibilities this agreement brings, positioning UKS as a key player in the emerging green fertilizers economy. It is a testament to our commitment to innovation, environmental stewardship, and building a prosperous, low-carbon future for our citizens and the world,” said Timur Mukhammedjanov, Chairman of the Board of Uzkimyosanoat.

“This signing represents a significant step towards achieving our ambitious renewable energy targets. Green H₂ holds immense potential to transform our energy landscape, attract investment, and foster innovation, positioning Uzbekistan as a regional leader in the green economy,” said Sarvar Khamidov, Deputy Minister of the Ministry of Investment, Industry and Trade of the Republic of Uzbekistan.

“We enable sustainable growth of communities around the world by providing competitive power and water desalination solutions, and in green H₂, we are the first mover in the industry with our participation in the Neom Green H₂ Project with Air Products and Neom. Our team has done a magnificent job to launch our second project in Uzbekistan together with Uzkimyosanoat and the Uzbek government to make the chemical industry in Uzbekistan a world leader in decarbonization. Moreover, the financial close of the Karatau wind project with the support of EBRD, DEG, Proparco and the Ministries of Energy and Investment, Industry & Trade of Uzbekistan is a key milestone in the installation of about 5,000 MW of capacity in the country by ACWA Power, which will reduce CO₂ emissions by over 6 MMt by 2030,” said Marco Arcelli, Chief Executive Officer of ACWA Power.

The green H₂ agreement with Uzkimyosanoat is the first project of its kind in Central Asia. The initial phase, valued around $100 MM, will be in Tashkent region and aims to produce 3,000 tpy of green H₂ for the Uzbek chemicals industry to save up to 20.4 MMm³y of natural gas. The first phase is a step towards a bigger project, the second phase, with an investment of $4 B, which will include scaling up green H₂ production to 120,000 tpy. The facility will save a total of 830 MMm³y of natural gas and contribute to the reduction of 20 MMt of CO₂ emissions. The project will also integrate world-class renewable energy technology with a capacity exceeding 2.6 GW.

By embracing green H₂ and replacing fossil fuels, Uzbekistan will make significant progress in reducing its carbon footprint and become a key partner for Europe in the supply of solutions for hard to abate sectors. The Karatau Wind Project, with a capacity of 100 MW, is expected to achieve commercial operation in February 2025.