Masdar explores green hydrogen production potential in Azerbaijan

Masdar, a UAE-based company, is actively researching green hydrogen production in Azerbaijan.

Murad Sadikhov, director of Masdar Azerbaijan, shared with local media that the company, in collaboration with Azerbaijan's Ministry of Economy and Ministry of Energy, has been conducting research on hydrogen production, Caliber.Az reports.

"Since 2022, we have been conducting a feasibility study for offshore wind energy and green hydrogen production in Azerbaijan. The research is ongoing, and we expect to present the results within the next month or two. The government of Azerbaijan will then decide on the next steps. This work is being carried out jointly with the State Oil Company of Azerbaijan Republic (SOCAR). Over the past two years, we have created a substantial database," Sadikhov explained.

A study by the consulting firm Advisian, supported by the European Bank for Reconstruction and Development (EBRD), highlights Azerbaijan's significant potential to meet the demand for low-carbon hydrogen. This potential is attributed to established downstream ammonia and methanol markets and extensive natural gas distribution systems that can be converted to hydrogen.

Hydrogen can play a crucial role in decarbonizing these industries. With substantial renewable resources and direct access to natural gas reserves in the Shah Deniz field, Azerbaijan is strategically positioned to develop both green and blue hydrogen. Additionally, the existing natural gas supply infrastructure, such as the Southern Gas Corridor, could potentially allow for the blending of hydrogen with natural gas for export.