ACWA Power signs green hydrogen pact, wind financing in Uzbekistan

Saudi Arabia's ACWA Power Co (TADAWUL:2082) announced today that it has entered into two major agreements for green hydrogen and wind projects in Uzbekistan. The agreements were signed during the EBRD 2023 Annual Meeting and Business Forum held in Samarkand, Uzbekistan.

The first agreement is a partnership with Uzkimyosanoat, Uzbekistan's national holding company for chemicals, for the implementation of green hydrogen projects in two phases. The first phase, valued at some USD 100 million (EUR 93m), will be located in the Tashkent region and seeks to provide 3,000 tonnes per year of green hydrogen to the Uzbek chemicals industry as a replacement for natural gas. The second phase is a larger endeavor worth USD 4 billion and will involve over 2.6 GW of renewable energy.

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Uzkimyosanoat's board chairman, Timur Mukhammedjanov, said that the partnership positions UKS as a key player in the emerging green fertilisers economy. This agreement follows the signing of heads of terms agreements earlier this year.

The second deal is for the financing of the USD-120-million Karatau wind farm project, formerly known as the Nukus wind project, with a capacity of 100 MW and an expected start-up in February 2025. The European Bank for Reconstruction and Development (EBRD) is providing a loan of USD 19.3 million, with co-financing from the German Development Finance Institution Deutsche Investitions und Entwicklungsgesellschaft (DEG) and the French Development Finance institution Societe de Promotion et de Participation pour la Cooperation Economique (Proparco).

The project has received support from the Uzbek Ministry of Economy and Finance (MoEF) through the Government Support Agreement (GSA). The National Electric Grid of the Republic of Uzbekistan (NEGU) will purchase the power generated over a 25-year period.

(USD 1 = EUR 0.925)