News from 2024-05-28 / DEG

DEG invests in green hydrogen for the first time

The production of green hydrogen has the potential to play an important role in the decarbonization of various sectors, as hydrogen can be used as a multiple energy source, for example in industry and the energy sector.

Green hydrogen is produced through the electrolysis of water, using renewable energy sources such as wind or solar energy as a power source. The process of electrolysis splits water into its components hydrogen and oxygen.

As an impact and climate financier, DEG is now supporting the development of the first green hydrogen plant in Uzbekistan. It is providing the company ACWA Power UKS Green H2 LLC JV with a loan of USD 25 million for development and construction of this new plant. After completion, the 20 MW hydrogen plant will produce around 3,000 tons of green hydrogen per year. The green energy for the operation of the plant will be generated by a 52 MW extension of a wind farm in Bukhara province in Uzbekistan, already financed by DEG.

Uzbekistan’s green hydrogen strategy aims to decarbonize heavy industries, promote green fertilizer exports and support greenhouse gas commitments. The project is the pilot project under this strategy, and contributes to targeted increase of generation to 27 GW and share of renewables in the energy mix to 40%, by 2030.

In order to drive forward the green transformation in Uzbekistan, DEG is currently financing and supporting projects with a capacity up to 1,150 MW after completion.

Marco Arcelli, CEO of ACWA Power, expressed enthusiasm for the partnership, stating: "This collaboration with DEG marks a pivotal moment in our journey towards sustainable energy solutions. By harnessing the power of green hydrogen, we are making significant efforts in reducing carbon emissions and promoting environmental stewardship. Together with DEG, we are committed to pioneering renewable energy projects that create lasting positive impacts for communities and the planet."

Monika Beck, Managing Director at DEG commented: “DEG is proud to be part of the first pilot project for Green Hydrogen in Uzbekistan. Together with our longstanding partner ACWA Power we support the country on its way towards a greener and sustainable future. At the same time with this investment we continue to pursue DEG’s own Impact.Climate.Returns strategy.“


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