EU, Kazakhstan Sign $50 Billion Green Hydrogen Supply Deal
- October 28, 2022
- Posted by: Quatro Strategies
- Category: Cleantech
The European Union and Kazakhstan signed an investment deal for Hyrasia One, a subsidiary of the European cleantech Svevind Energy Group, to build one of the world’s largest industrial plants for green hydrogen in Kazakhstan’s Mangystau region. The investment agreement was signed by Svevind CEO Kropp and Kazakh First Deputy Prime Minister Sklyar during European Council President Michel’s visit to the Central Asian nation and in the presence of Kazakh President Tokayev.
The agreement aims to build wind energy and photovoltaic plants with a capacity of 40 GW in Southwest Kazakhstan. The renewable energy of about 120 TWh per year generated by these plants will supply an industrial park of electrolyzers on the coast of the Caspian Sea, which will have a total capacity of 20 GW and produce up to two million tonnes of green hydrogen per year.
The production is expected to account for one fifth of the expected EU import demand for green hydrogen in 2030. Hyrasia One could therefore become a key player for the hydrogen markets currently emerging in Europe, as well as in Kazakhstan itself and in Asian countries.
European Commission President von der Leyen and Tokayev discussed an strategic partnership between the EU and Kazakhstan for sustainable raw materials, batteries and green hydrogen. The new production and distribution plant to be built by Hyrasia will play a key role in Kazakhstan’s supply of green hydrogen to the EU.
Hydrogen production in the Mangystau region is scheduled to start as early as 2030 and reach full capacity by around 2032. The final investment decision for the project, worth around 40 to 50 billion US dollars, will be made in 2026.
“With HYRASIA ONE, we are providing energy and feedstock security on a unique industrial scale. The investment agreement signed today takes the project into the next, decisive phase. We consider ourselves fortunate to have found a reliable partner in the government of the Republic of Kazakhstan, which supports our plans and has recognized the enormous economic potential of producing large quantities of green hydrogen”, said Kropp.
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