EBRD’s Andi Aranitasi: Leading Uzbekistan’s Green Hydrogen Journey in Global Energy Transition

In this exclusive interview to Kursiv Uzbekistan, Andi Aranitasi, Head of Uzbekistan at the EBRD, provides insights into the potential of green hydrogen, highlighting its importance for Uzbekistan’s economy and its role in the global energy transition.

About green hydrogen project

— Hydrogen projects are rare globally. Why has the EBRD decided to pursue green hydrogen in Uzbekistan?

— Hydrogen is typically produced through electrolysis, a process that separates hydrogen from oxygen in water using electricity. When powered by renewables like solar or wind, it becomes green hydrogen, which is sustainable and emissions-free.

— Why Uzbekistan?

— For Uzbekistan, this project is significant for two reasons. First, the country has vast renewable energy potential. Second, there is a strong domestic demand for hydrogen, especially in the fertiliser sector, where hydrogen is an essential input for the production of ammonia, which in turn is key for fertilizer production. Fertilisers are a hard to abate (decarbonize) sector and having hydrogen produced from green sources, is key. This project aligns with Uzbekistan’s 2030 strategy, aiming to decarbonise the economy and increase the use of renewable energy.

Uzbekistan’s renewable energy progress

— Uzbekistan has been making significant strides in renewable energy. What progress has been achieved, and why did the EBRD switch to green hydrogen?

— Uzbekistan has more than 18 GW of renewable energy projects at various stages of development. The European Bank for Reconstruction and Development (EBRD) has financed more than 3 GW of these projects already. A significant milestone is the Tashkent Solar PV plant, which includes Central Asia’s largest energy storage system, boasting a capacity of 500 MWh.

The introduction of green hydrogen represents the next logical step in diversifying Uzbekistan’s energy portfolio. Globally, there are just a few such projects and the project we are financing together with the large storage solution in the Tashkent Solar PV, position Uzbekistan as a pioneer in adopting cutting-edge technologies.

—Which industries in Uzbekistan are likely to benefit the most from this initiative?

— The fertilisers industry is expected to see significant benefits from the adoption of green hydrogen, which is a key ingredient in producing low-carbon fertilisers like ammonia and urea. Fertiliser production is classified as a “hard-to-abate” sector, indicating that decarbonising is particularly challenging.

This pilot project aims to produce approximately 3,000 tonnes of green hydrogen annually, which would help reduce CO₂ emissions by around 22,000 tonnes. The project’s primary objective is to demonstrate the technical and commercial viability of green hydrogen. If the project proves successful, it can be scaled up significantly.

Global standing

— How does Uzbekistan’s green hydrogen capacity compare to other countries?

— Uzbekistan is strategically positioned to leverage its abundant renewable resources. Renewable electricity is essential for producing green hydrogen, and the country has significant potential in this area.

In terms of demand, Uzbekistan’s fertiliser industry requires over 460,000 tonnes of hydrogen annually, with around 80% of this hydrogen used in ammonia production. Currently, this hydrogen is produced primarily from fossil fuels, particularly natural gas. Uzbekistan could use renewable energy capacity to replace fossil fuel-based hydrogen with green hydrogen, significantly reducing carbon emissions.

Looking ahead, green hydrogen not only has implications for domestic decarbonisation but also for exports. Trading blocs such as the European Union increasingly expect that imports meet strict environmental standards. Products may need to reflect the cost of emissions, either during production or through border taxes. By proactively addressing these requirements, Uzbekistan is taking a commendable forward-thinking, proactive approach.

Key driving partnerships

— Partnerships are crucial for such projects. Who is involved in this initiative?

— We are fortunate to collaborate with two exceptional partners, forming what can only be described as an ideal partnership. In terms of electricity production, we are working with ACWA Power, a globally renowned developer of renewable energy projects. ACWA Power has shown a strong commitment to Uzbekistan, with investment commitments of $15 bn at various stages of implementation, and is actively implementing numerous solar and wind projects, many financed through our support.

Locally, we have partnered with Joint Stock Company UzKimyoSanoat (UKS), a key private-sector producer of fertilisers with extensive expertise in the industry and a deep understanding of the local market. These two elements are vital for ensuring the project’s commercial success alongside the financing we provide. ACWA Power focuses on renewable electricity production, while UKS is dedicated to decarbonising its operations by adopting green hydrogen technologies. I would like to thank the government of Canada for providing a concessional loan of $10 mn towards the completion of this project. 

Additionally, we have collaborated with UKS to establish a low-carbon pathway toward achieving net-zero emissions in their production processes by 2050. Their website clearly outlines this commitment. Projects like this are central to UKS’s strategy, and both partners share a strong alignment of interests and possess a deep understanding of their respective sectors, which are fundamental to the project’s overall success.

Financial scope and scalability

— What is the total investment required for this project?

— For this pilot project, the total investment amounts to just over $65 mn, which includes concessional financing from one of our donors. However, this is only the beginning. The purpose of the pilot is to demonstrate both the technical and commercial feasibility of the initiative and to establish a framework that can be replicated not just in Uzbekistan, but throughout the entire region.

This project acts as a catalyst, showcasing best practices, essential components, and viable financing models. While the initial investment is $65 mn, this commitment will grow significantly as the project scales up. Our discussions with investors indicate that we will expand the project to a much larger scale if the pilot proves successful. The growth potential is immense.

Alignment with Uzbekistan’s 2030 strategy

— How does this project align with Uzbekistan’s renewable energy targets, precisely the 25% goal by 2030?

— The plan is well-aligned with expectations. Achieving 25% renewable energy by 2030 is ambitious, but Uzbekistan is progressing, thanks to its leadership in renewable sources.

What’s essential now is to further enhance the regulatory framework to encourage investments, pinpoint strategic projects, and foster strong international partnerships. Uzbekistan must attract the right investors and financing partners to realise this vision.

— What actions should Uzbekistan take to accelerate its transition to green energy?

— Uzbekistan needs to strengthen its grid infrastructure. Although the country has made significant progress in deploying renewable energy sources, these sources are inherently intermittent. For example, solar power is generated during the day but not at night, and wind energy can vary based on changing weather patterns. To better integrate renewables into the energy mix, it is essential to have a more robust grid. Strengthening the grid should be the next major focus.

The government’s role in success

— What role does the government play in ensuring the success of this project?

— The government plays a crucial role in ensuring the success of this initiative. The government needs to create a level playing field for investors by establishing a solid regulatory framework that offers long-term visibility and stability. Investors need assurance that their investments will remain secure and yield returns.

We have been delighted with our collaboration with the Uzbek authorities in all of the above aspects.

In addition to financing renewable projects, we have closely worked on policy design to support renewable energy development. For instance, we are facilitating tenders for up to 2 GW of wind energy in the Karakalpakstan region and have contributed to strengthening the green investment framework.

The government’s willingness to collaborate and strong commitment to sustainability are key factors behind Uzbekistan’s rise as a regional leader in renewable energy development.

Personal perspective

— Could you please share more about your personal experience?

— This is a new experience for me. My background as a banker has primarily been in the energy sector, and I have worked on numerous projects, though none have involved coal financing. One of the highlights of my career was a geothermal project in Turkey a few years ago, one of the world’s largest. The EBRD region could be richer in geothermal resources, making that project incredibly distinctive.

Regarding green hydrogen, I have often told my colleagues that while I enjoy my role as a manager, the only reason I would consider returning to banking would be to work on a project like this. Globally, only a handful of green hydrogen projects are currently in the implementation phase—perhaps five or six. While many initiatives have been announced, very few have reached this stage, which makes this project particularly unique.

We have financed only one other hydrogen project, located in Egypt. This is our second, but Uzbekistan’s project is more advanced in terms of implementation. Additionally, it is the first time we have seen a collaboration between private and public partners in such a project, adding an extra layer of interest.