Uzbekistan’s UzKimyoSanoat and ACWA Power receive $65M loan for hydrogen project from EBRD
A new “green” hydrogen production plant is set to be constructed in Chirchik by the end of the year, as announced by UzKimyoSanoat and ACWA Power. The two companies have secured a loan from the European Bank for Reconstruction and Development (EBRD) to fund the project.
The loan and guarantee agreements were signed on September 10, with the EBRD providing an Equity Bridge Loan to ACWA Power UKS Green H2 for the implementation of the project. The EBRD plans to allocate a total of $65 million for the project, including $10 million in concessional financing from Canada.
The plant in Chirchik will utilize electrolysis to produce “green” hydrogen, making it the first of its kind in Central Asia and the CIS, according to UzKimyoSanoat. This initiative is part of Uzbekistan’s efforts to develop “green” hydrogen production in the region.
In addition to producing hydrogen, the plant will also synthesize ammonia and manufacture nitrogen fertilizers. It is estimated that the facility will be able to produce up to 500,000 tons of ammonium nitrate annually and save 33 million cubic meters of natural gas.
The project will be managed by the joint venture ACWA-UKS GH2, with ACWA holding an 80% share and UzKimyoSanoat holding 20%. The total cost of the project is estimated to be $88 million, with construction expected to begin in the coming months. This new plant represents a significant step forward in Uzbekistan’s efforts to promote sustainable energy production and reduce reliance on traditional fossil fuels.
