Saudi Arabia-based ACWA Power has signed a deal to build a $100 million green hydrogen project with Uzbekistan's state-owned chemical firm Uzkemyoasat, which will be the first project of its kind in the Central Asian country.
The deal includes a power purchase agreement with the National Power Grid of Uzbekistan, ACWA Power said Thursday in a filing with the Saudi Exchange.
The hydrogen offtake capacity is set at 3,000 tons per year, while the renewable capacity will range from 52-100 megawatts (MW), the regulatory filing added.
The hydrogen and power purchase deals will be valid for 15 and 25 years, respectively, and includes the project’s development, construction, and operation.
ACWA said the financial impact is expected once the project achieves commercial operations in June 2024 and June 2025. The company's stock traded 0.5% higher at $41.54 (SAR 155.8) by 1:05 pm GST Thursday. Renewable energy projects
ACWA Power, partly owned by Saudi's sovereign wealth fund, the Public Investment Fund (PIF), has recently been active in renewable energy projects in Uzbekistan.
In March, it signed power purchase agreements worth $2.5 billion for the development, construction, operation, and ownership of three solar photovoltaic (PV) plants in Uzbekistan. The three PV solar projects will have a combined capacity of 1,400 megawatts (MW), according to a statement posted on the Saudi Exchange.
Under the deals signed with the National Electric Grid of Uzbekistan), ACWA Power will also develop, construct, operate, and own three Battery Energy Storage Systems (BESS) with a combined capacity of 1,500 MW. The facilities will be located in the Tashkent, Samarkand, and Bukhara regions of Uzbekistan and will likely offset 1.6 million tons of carbon emissions per year and power 1.1 million households once completed.
