ACWA Power, a leading Saudi power and water producer, has signed three major agreements worth $2 billion with Uzbekistan in the areas of renewable energy and hydrogen production, making it the second largest country for the Saudi company in terms of overall investment.
Accordingly, ACWA will build a 1.5-GW wind farm in the country’s Karakalpakstan region; gas-to-power, renewable energy, and green hydrogen projects in Uzbekistan; and chart a roadmap for the investment of green hydrogen in the Central Asian republic in collaboration with Air Products.
The new projects signify Uzbekistan’s long-term strategy to diversify the country’s energy mix, which targets 8 GW and 12 GW of solar and wind capacity by 2026 and 2030, respectively.
The agreements were signed by Shavkat Mirziyoyev, President of Uzbekistan, during his visit to Saudi Arabia in August.
The 1.5-GW Karakalpakstan wind project will be one of the biggest single-site onshore wind projects in Central Asia and the world.
Valued at $2.4 billion, the project is expected to achieve financial close by the end of 2023 and be fully commissioned by the first quarter of 2026.
When complete, the facility is expected to power 1.65 million households and offset 2.4 million tonnes of carbon emissions per year.
The Karakalpakstan wind project is ACWA Power’s fifth project in Uzbekistan. The company’s Uzbek portfolio also includes three wind farms, and a combined cycle gas turbine project.
In another agreement, ACWA Power will collaborate with the Uzbek government to develop projects in gas-to-power, wind, hydroelectric and green hydrogen projects valued at $10billion over a five-year period, starting 2023.
According to Azim Akhmedkhojaev, First Deputy Minister of Energy of the Republic of Uzbekistan, says: "This partnership will be a major contribution to Uzbekistan's achievements in developing and modernising the energy sector, and specifically our dedication to green energy. The joint projects will also give us access to the most modern technologies."
Meanwhile, Mohammad Abunayyan, ACWA Power Chairman, says: "Uzbekistan today is at the forefront of energy transition in central Asia. With the signing of these key agreements with Uzbekistan’s Ministry of Investments and Foreign Trade and Ministry of Energy, Uzbekistan will become the second largest country for ACWA Power in terms of overall investment and we are proud to play a vital role in supporting the nation’s decarbonisation efforts, stemming from the strong international cooperation between Saudi Arabia and Uzbekistan under their visionary leadership"
Also commenting on the agreements, Seifi Ghasemi, Air Products’ Chairman, President and Chief Executive Officer, says: As the world’s leading supplier of hydrogen and clean energy megaprojects, we are honored to continue our collaboration with ACWA Power and the Republic of Uzbekistan, exploring clean energy solutions that support Uzbekistan’s drive for decarbonisation and energy security for its people."