Azerbaijan to Develop Its First National Low-Carbon Hydrogen Strategy
Azerbaijan to Develop Its First National Low-Carbon Hydrogen Strategy
Azerbaijan will develop its first National Strategy for Low-Carbon Hydrogen as part of its decarbonization efforts, with plans to replace "grey" hydrogen with "green" hydrogen, Rena Humbatova, Deputy Director of the State Agency for Renewable Energy Sources (BOEMDA), said during discussions at Baku Climate Week.
She noted that Azerbaijan has long produced "grey" hydrogen (derived from natural gas splitting into carbon and hydrogen), which is used in oil refining to clean gasoline and diesel. "Currently, new units for producing 'grey' hydrogen are operational at the Oil Refinery name after H. Aliyev, leading to increased production. Many oil and gas companies are exploring the possibility of replacing 'grey' hydrogen with 'green' hydrogen as they pursue decarbonization," Humbatova said. She acknowledged that the price of "green" hydrogen is higher, but its production is cleaner, resulting in lower CO2 emissions.
Energy
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In 2023, Azerbaijan produced 4 million 369.8 thousand tons of fuel (automotive gasoline, diesel fuel, and aviation kerosene), whereas last year the total volume amounted to only 3 million 906.9 thousand tons. Over the past year, fuel production in the country decreased by 462.9 thousand tons, or by 10.6%.
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According to preliminary data, in the past year, Azerbaijan's gross domestic product (GDP) amounted to 126.3 billion manats (approximately $74.3 billion at the current exchange rate), a 4.1% increase compared to 2023, the monthly report by the State Statistical Committee of the Republic of Azerbaijan.
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In 2024, the total volume of oil and condensate production in Azerbaijan amounted to 29 million 63 thousand tons, the monthly report by the State Statistical Committee of the Republic of Azerbaijan.
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The Trans Adriatic Pipeline (TAP AG) consortium has developed a roadmap for preparing to transport hydrogen, according to TAP AG. “TAP’s goal is to develop infrastructure for hydrogen transportation. We have defined a roadmap for preparing for the medium- and long-term transportation of natural gas and hydrogen blends, as well as renewable gases. A preliminary study in 2021 confirmed the potential of TAP for transporting hydrogen mixtures in the future. Currently, we are conducting pipeline material tests at an international laboratory. The results of the first tests were received in the fourth quarter of 2024 and are now under evaluation. The next round of tests has already begun, and results are expected in 2025,” said the consortium.
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