Saudi Arabia's ACWA Power and China's PowerChina have commenced the construction of a plant for the production of green hydrogen in Uzbekistan.

Uzbek President Shavkat Mirziyoyev last week pressed the symbolic project "launch button" together with Saudi Arabia's Minister of Investment Khalid al-Falih and the head of ACWA Power, Muhammad Abunayan.

For PowerChina, the project is the first conducted abroad by the company in the field of hydrogen. The company noted the investment's importance within the framework of China's Belt and Road Initiative (BRI) for modern infrastructure and economic development.

The plant will have the capacity to produce 3,000 tonnes/year of green hydrogen through the electrolysis of water. The energy for the installation's production processes will be generated by a wind farm located nearby.

The produced hydrogen will be used for the synthesis of ammonia and in turn the production of nitrogen fertilizers. The fertilizer production will receive up to 500,000 tonnes of saltpeter per year and save 33mn tonnes of natural gas.

In 2021, Uzbekistan’s energy ministry signed agreements with ACWA and American Air Products on the development of hydrogen energy in the country. In August 2022, the parties concluded another agreement on the industrial production of green hydrogen.

In January, it became known that a plant for the production of hydrogen and ammonia would be established in Chirchik. The final agreement between ACWA and Uzkimyosanoat was signed in May at the EBRD Business Forum in Samarkand.

According to the agreement, the project will be managed by the joint venture ACWA-UKS GH2 with the JV share of ACWA standing at 80% and Uzkimyosanoat's stake set at 20%. The project costs are tentatively estimated at $88mn.