EBRD funds 1st renewable hydrogen project in Central Asia

The European Bank for Reconstruction and Development (EBRD) is financing Central Asia’s first renewable hydrogen project in Uzbekistan with a $65 million (€58 million) investment package.

The funding will support the development of a 20 MW electrolyser and a 52 MW wind power plant, marking the EBRD’s first such initiative in Central Asia.

The financial package includes a $55 million (€49 million) senior loan from the EBRD and up to $10 million (€9 million) in concessional finance from Canada through the Special Fund for the High Impact Partnership on Climate Action (HIPCA).

Additionally, an equity bridge loan of up to $5.5 million (€4.9 million) will be provided by the EBRD.

This project, a collaboration between ACWA Power UKS Green H2 and Uzbekistan’s state-owned Uzkimyosanoat, aims to replace carbon-intensive grey hydrogen with renewable hydrogen for ammonia fertiliser production.

Expected to produce up to 3,000 tons of renewable hydrogen annually, the facility will reduce CO2 emissions by approximately 22,000 tonnes each year.

The EBRD has previously financed a similar renewable hydrogen project in Egypt and continues to lead in supporting sustainable infrastructure across Central Asia, having invested around €5 billion in 164 projects in Uzbekistan to date.