Owning a combination of factors necessary for the development of the green hydrogen industry, Azerbaijan is set to become a regional leader and a reliable supplier to the EU, Report informs referring to a press release by the Boston Consulting Group (BCG).
Support of the green energy projects under the REPowerEU plan and the growing interest of investors create favorable conditions for the rapid development of the renewable energy sector (RES) and the hydrogen sector of Azerbaijan’s economy.
According to Global Solar Atlas, the solar generation potential in Azerbaijan is comparable to the south of Italy and is almost 1.5 times greater than Germany’s, and the potential of wind energy on the Absheron Peninsula is comparable to the North Sea shelf areas.
“In Azerbaijan, we see a unique combination of all components needed for the development of the hydrogen sector. There are natural resources, infrastructure, and the end-consumer. And all this in a compact geography. The potential of Azerbaijan’s renewable energy resources is extremely high, ensuring a strong competitive advantage, namely, the low cost of green hydrogen production,” said Vladimir Rogov, managing director and partner of the Boston Consulting Group (BCG).
In terms of profits, the country could earn from $230-500 million per year, given the expected in Europe hydrogen price decrease nearly twice, from current ±$11 to $5.8/kg, he noted.
“Another strong advantage of Azerbaijan is its ability to transport hydrogen, up to 10-15% of the flow, relatively efficiently and cost-effectively along existing gas pipeline networks to Europe, especially if compared to exports from sub-Saharan Africa or the highly inefficient transport of liquefied hydrogen from overseas,” he added.
“It makes sense to also build new pipelines, envisioning the future demand for hydrogen. For example, given the TAP volume of 11 billion cubic meters per year, the potential for transporting hydrogen from Azerbaijan is 40,000-85,000 tons per year (5-10% of the gas volume). This will make only 2-4% of 2.3 million tons of the projected hydrogen demand in Italy in 2030,” he said.
https://report.az/en/energy/bcg-azerbaijan-can-become-important-supplier-of-low-carbon-hydrogen-to-eu/