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The European Bank for Reconstruction and Development (EBRD) will help decarbonize fertilizer and electricity production in Uzbekistan by financing a pilot facility for renewable hydrogen production, EBRD news service “Gazeta.uz” reported.
The capacity will include a 20 MW electrolysis plant and a new 52 MW wind farm.
The project will help replace grey hydrogen, which is derived from natural gas and widely used in the production of ammonia fertilizers, with renewable hydrogen. The latter is considered a key alternative for decarbonizing the fertilizer industry, the report said.
Once operational, the plant is expected to produce up to 3,000 tonnes of renewable hydrogen per year and reduce carbon dioxide emissions by approximately 22,000 tonnes per year.
Following YTTB’s support for a renewable hydrogen production plant in Egypt in 2022, this capacity will be the second renewable hydrogen project financed by the bank.
YTTB provided a $65 million financing package to ACWA Power UKS Green H2, a private company jointly owned by Uzkimyosanoat and ACWA Power, an international power and desalination water plant producer, investor and operator, for the development, design, construction and operation of the facility.
The financing package includes a $55 million senior loan from YTTB and up to $10 million in concessional financing from Canada’s High Impact Partnership for Climate Change (HIPCA) fund. YTTB also plans to provide up to $5.5 million in equity capital mezzanine loans for the project.
“YTTB is proud to co-finance this important renewable hydrogen production facility in Uzbekistan with our long-term client ACWA Power and its partner Uzkimyosanoat. This will be the first project in Central Asia, a region where carbon-intensive industries are difficult to reduce emissions,” said Nandita Parshad, Managing Director of Sustainable Infrastructure at YTTB.
HIPCA is supported by Austria, Canada, Finland, the Netherlands, South Korea, Spain, Switzerland, Taiwan International Cooperation and Development Fund (ICDF), the United Kingdom and the United States.
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