Azerbaijan is capable of producing hydrogen at cost-effective prices - World Bank

Azerbaijan has the ability to produce “green” and “blue” hydrogen at economically advantageous prices.

According to Azernews, Roland Price, Regional Director of the World Bank (WB) for the South Caucasus, said this in an interview with Trend.

“I have already mentioned that Azerbaijan has enormous potential, especially in terms of the abundance of solar and wind resources. This implies significant opportunities for the production of green and blue hydrogen at economically advantageous prices. We expect to witness such developments in the mid-2030s," she said.

The Regional Director mentioned that this is a relatively new area with developing technologies.

"What's remarkable is the government's active engagement with private sector stakeholders to discuss developments in the sector. Typically, the private sector leads in terms of technological advancements, which makes this collaboration beneficial," Price said.

According to her, as potential next steps, the World Bank recommends conducting a comprehensive study to assess the feasibility of developing clean energy exports.

"This study should outline a specific roadmap, defining the role of government to minimize it to encourage external participation without the government bearing the entire investment burden. Additionally, it is critical to examine the prospects for the domestic hydrogen industry and potential domestic hydrogen markets for transport, industry, and heating. These areas present opportunities that we are keen to explore. However, at the bank we prefer not to take any action without a thorough understanding of the situation on the ground," she explained.

Price also added that the World Bank's proposal for Azerbaijan is to conduct a thorough study of this kind, using the findings as a basis for identifying necessary investments and reforms that could further develop the sector.

Let us recall that on December 15, 2022, the Ministry of Energy of Azerbaijan and the Australian Fortescue Future Industries (FFI) signed an agreement on joint cooperation in the exploration and development of renewable energy sources and green hydrogen production enterprises in Azerbaijan. This agreement covers research and implementation of renewable energy and green hydrogen projects with a total capacity of up to 12 GW in Azerbaijan.