Uzbekistan has initiated a $62mn investment project aimed at establishing green hydrogen production facilities in collaboration between "Maxam-Chirchik", a prominent entity within Uzbekistan's industrial sector, and "ACWA Power Uzbekistan Hydrogen Holdings," a subsidiary of the esteemed "ACWA Power Company" of Saudi Arabia.
Under the joint venture named "ACWA Power UKS Green H2," plans are underway to construct a green hydrogen production plant alongside a wind power facility in the Gijduvon district of the Bukhara region.
Key Agreements and Obligations
The project is governed by several pivotal agreements, including the Investment Agreement signed between the Uzbekistan government, the Investor, and the Project Company. This agreement delineates responsibilities, financing arrangements, and timelines for project execution. Additionally, agreements on electricity purchase, transportation, and procurement of "green hydrogen" have been formalized to ensure seamless operations and resource availability.
As per the agreement signed on November 27, 2023, the project entails the construction of a green hydrogen production plant with a capacity of 3,000 tons and a wind power plant with a capacity of 52 MW. The total foreign direct investment in the project amounts to $62mn.
Regulatory Framework and Land Allocation
To facilitate project implementation, regulatory frameworks have been established to streamline procedures related to land allocation, taxation, and foreign workforce engagement. The Ministry of Energy assumes a central role in coordinating project activities, ensuring compliance, and fostering an enabling environment for sustainable energy ventures.
Green Energy Commitment
The investment project underscores Uzbekistan's commitment to transitioning towards renewable energy sources and reducing greenhouse gas emissions. By harnessing "green hydrogen" production technologies, the country aims to enhance energy security, promote economic growth, and contribute to global efforts in combating climate change.
A comprehensive roadmap has been devised to expedite project execution, outlining key milestones, resource requirements, and stakeholder responsibilities. Timely completion of construction, infrastructure development, and operationalization of production facilities is prioritized to meet project objectives efficiently.
Government Oversight and Accountability
To ensure effective implementation and adherence to project timelines, governmental bodies and regional authorities are designated with specific roles and responsibilities. Stringent oversight mechanisms are in place to monitor progress, address challenges, and facilitate inter-agency coordination. The prime minister of Uzbekistan, Abdulla Aripov is appointed as the person responsible for the coordination and control of activities of the ministries and agencies responsible for the implementation of the project.
Earlier, it was reported that PowerChina, in collaboration with Saudi company ACWA Power, has initiated the construction of a green hydrogen production plant in Uzbekistan.
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