EBRD Allocates $65 Million for Uzbekistan's First Renewable Hydrogen Plant
Uzbekistan
The European Bank for Reconstruction and Development (EBRD) will finance the construction of Uzbekistan's first renewable hydrogen production plant, aiming to decarbonize fertilizer production and energy generation.
The plant is expected to produce up to 3,000 tons of renewable hydrogen annually, reducing CO2 emissions by approximately 22,000 tons per year.
The project will include a 20 MW electrolysis unit and a new 52 MW wind power plant. The EBRD is offering a $65 million financial package to ACWA Power UKS Green H2, a company owned by ACWA Power and Uzkimyosanoat, which oversees Uzbekistan's chemical enterprises.
The financing package comprises a $55 million senior loan from the EBRD and concessional financing of up to $10 million provided by Canada under the High-Impact Partnership on Climate Action (HIPCA) Special Fund. Additionally, the EBRD plans to provide a mezzanine equity loan of up to $5.5 million for the project.
This initiative marks the first of its kind in Central Asia, aiming to replace "grey" hydrogen, derived from natural gas and widely used in Uzbekistan's ammonia fertilizer production, with renewable hydrogen. This represents a crucial step in the decarbonization of the fertilizer sector in the country.
The project will include a 20 MW electrolysis unit and a new 52 MW wind power plant. The EBRD is offering a $65 million financial package to ACWA Power UKS Green H2, a company owned by ACWA Power and Uzkimyosanoat, which oversees Uzbekistan's chemical enterprises.
The financing package comprises a $55 million senior loan from the EBRD and concessional financing of up to $10 million provided by Canada under the High-Impact Partnership on Climate Action (HIPCA) Special Fund. Additionally, the EBRD plans to provide a mezzanine equity loan of up to $5.5 million for the project.
This initiative marks the first of its kind in Central Asia, aiming to replace "grey" hydrogen, derived from natural gas and widely used in Uzbekistan's ammonia fertilizer production, with renewable hydrogen. This represents a crucial step in the decarbonization of the fertilizer sector in the country.
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