Tashkent, Uzbekistan (UzDaily.com) — The European Bank for Reconstruction and Development (EBRD) is supporting the decarbonization of fertilizer and electricity production in Uzbekistan by financing a pilot project for renewable hydrogen production.

The project will include a 20 MW electrolysis plant and a 52 MW wind power plant.

The EBRD is providing a financial package of US$65 million (58 million euros) to ACWA Power UKS Green H2, a company specifically established for the development, design, construction, and operation of this facility.

ACWA Power UKS Green H2 is owned by ACWA Power and Uzkimyosanoat (UKS).

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

The project will be the second in Central Asia financed by the EBRD for renewable hydrogen production, following a similar project in Egypt in 2022. The new plant in Uzbekistan will help replace grey hydrogen, produced from natural gas, with renewable hydrogen, a significant step towards decarbonizing the fertilizer production sector. The plant is expected to produce up to 3,000 tons of renewable hydrogen per year and reduce annual CO2 emissions by approximately 22,000 tons.

The HIPCA program is supported by several countries, including Austria, Canada, Finland, the Netherlands, South Korea, Spain, Switzerland, Taiwan ICDF, the United Kingdom, and the United States. Uzbekistan has been the largest recipient of EBRD financing in Central Asia for four consecutive years. To date, the bank has invested approximately 5.0 billion euros in 164 projects in the country, a significant portion of which is directed towards supporting private entrepreneurship.