ACWA Breaks Ground on Its First Green Hydrogen Project in Uzbekistan

Saudi renewable developer ACWA Power has initiated the construction of a renewable green hydrogen project in Chirchiq, Uzbekistan. The project aims to produce over 3,000 metric tonnes of green hydrogen annually. In May, ACWA Power secured an $88 million offtake contract with the Uzbek state chemicals company, Uzkimyosanoat. The project is scheduled to commence operations by the end of 2024. ACWA will invest around USD 7.5 billion for renewable energy projects in Uzbekistan.

This facility will generate green hydrogen to replace natural gas produced from fossil sources. ACWA estimates that the project will save Uzbekistan up to 20.4 million cubic meters of natural gas each year.

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The first phase of the Chirchiq plant will follow an accelerated development timeline. An existing ammonia plant in Chirchiq, located 45 kilometers from Tashkent, will be connected to this facility. It will provide feedstock for ammonia-based fertiliser production while reducing reliance on fossil gas.

Additionally, ACWA is planning to invest $4 billion to scale up the Chirchiq project's annual hydrogen production capacity. The second phase aims to produce 120,000 metric tonnes of hydrogen annually. ACWA also has plans to construct a 1.5 GW gas-fired thermal power plant with a total project cost of $1.1 billion.

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About ACWA Power 

ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination, and green hydrogen plants worldwide, is actively pursuing green hydrogen projects as a crucial component of its sustainability strategy. The company is committed to developing and scaling up green hydrogen production facilities to support the transition to a low-carbon economy.

ACWA Power's green hydrogen initiatives span across various locations, demonstrating its global reach and commitment to this emerging sector. Here are some of the notable green hydrogen projects undertaken by ACWA Power:

• NEOM Green Hydrogen Project: ACWA Power is a key partner in the NEOM Green Hydrogen Project, a groundbreaking initiative to establish one of the world's largest green hydrogen production facilities in Saudi Arabia. The project aims to produce 600 metric tons of green hydrogen per day by 2026, leveraging renewable energy sources to power the electrolysis process.

• Green Hydrogen Export Corridor Exploration: ACWA Power is collaborating with Dutch entities to jointly explore the development of a green hydrogen export corridor between the Middle East and Europe. This initiative aims to establish a sustainable and efficient infrastructure for transporting green hydrogen to international markets.

• Layla Solar PV IPP: ACWA Power has successfully secured the tender for the 91 MW Layla PV Solar Independent Power Project in Saudi Arabia, demonstrating its expertise in integrating renewable energy into its projects. The Layla Solar PV IPP will contribute to the generation of clean electricity, potentially powering future green hydrogen production facilities.

• Green Hydrogen Feasibility Studies: ACWA Power is actively pursuing further green hydrogen projects and feasibility studies in different countries, particularly in the Middle East and Africa. The company is committed to expanding its green hydrogen footprint and supporting the adoption of this clean fuel across diverse regions.

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