Tashkent, Uzbekistan (UzDaily.com) — Uzkimyosanoat Association and the American company Trammo have signed an off-take contract for the purchase of high-value products, including green ammonia and urea produced in Uzbekistan.

The signing of the agreement took place on 19 September 2024, during the visit of the Uzkimyosanoat delegation to Istanbul, Turkey.

Trammo is expected to purchase green ammonia and urea that will be produced in the first phase of the project aimed at organizing green hydrogen production in Uzbekistan.

Additionally, a preliminary agreement has been reached for the purchase of 200,000 tons of products planned for production in the next phase of the project for green ammonia production in the Navoi region.

Uzbekistan is implementing a large investment project for the production of green hydrogen in the Tashkent region, which will be the first of its kind in the CIS and Central Asia. The project is being carried out in partnership between Uzkimyosanoat and the Saudi company ACWA Power.

In May 2024, an investment agreement worth US$88 million was signed between the Ministry of Investments, Industry and Trade and ACWA Power for the development of the Green Hydrogen project.

The signing took place during the 32nd Annual Meeting of the Board of Governors of the EBRD in Samarkand.

The project includes the installation of electrolyzers for hydrogen production and wind turbines to provide electricity to them. The project plans to build a 20 MW electrolyzer plant and a 52 MW wind power station.

The EBRD will provide a financial package of US$65 million (€58 million) to ACWA Power UKS Green H2, which was created specifically for the development, design, construction, and operation of this facility.

The financing package includes a senior loan of US$55 million (€49 million) from the EBRD and concessional financing of up to US$10 million (€9 million) from Canada through the Special Fund for High-Impact Partnerships on Climate Change (HIPCA). The EBRD also plans to provide interim equity financing of up to US$5.5 million (€4.9 million).

An off-take contract is an agreement between a buyer and a supplier for the supply of goods that the supplier plans to produce and deliver in the future, under previously agreed terms regarding price, quantity, and delivery timelines.