PowerChina, in collaboration with Saudi company ACWA Power, has initiated the construction of a “green” hydrogen production plant in Uzbekistan, as reported by Reuters. The inauguration ceremony, held on November 27, was attended by notable figures including President Shavkat Mirziyoyev, Saudi Investment Minister Khalid Al-Falih, and ACWA Power’s head Muhammad Abunayan.
This marks PowerChina’s first overseas venture in the hydrogen sector, emphasizing its significance in the context of the Belt and Road initiative. Upon completion, the plant is expected to produce 3,000 tons of “green” hydrogen annually through water electrolysis, powered by a nearby wind farm under construction.
The hydrogen produced will be utilized for ammonia synthesis and subsequent production of nitrogen fertilizers, with an estimated output of up to 500,000 tons of nitrate per year. This process is projected to conserve 33 mn tons of natural gas.
The Ministry of Energy had previously signed agreements with ACWA and American Air Products in 2021 to develop hydrogen energy in Uzbekistan. An additional agreement for industrial production of “green” hydrogen was concluded in August 2022.
The plant, located in Chirchik, was finalized in an agreement between ACWA and Uzkimyosanoat in May at the EBRD business forum in Samarkand. The project, estimated to cost around $88 mn, will be managed by the joint venture ACWA-UKS GH2, with ACWA holding an 80% stake and Uzkimyosanoat a 20% stake.
Before this, PowerChina had agreed to construct a 400 MW photovoltaic power plant in New Andijan. Work on this project commenced on September 13, with the first energy supply to the grid anticipated for April of the following year.
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