EBRD Invests In Uzbekistan’s First Renewable Hydrogen Facility To Decarbonize Fertilizer Production

The European Bank for Reconstruction and Development (EBRD) is advancing efforts to decarbonize Uzbekistan’s fertiliser production and power generation sectors by financing a pilot renewable hydrogen facility. This innovative project, the first of its kind in Central Asia, will feature a 20 MW electrolyser and a 52 MW greenfield wind power plant, aiming to replace grey hydrogen—currently produced from natural gas—with renewable hydrogen.

EBRD has pledged a financial package worth $65 million (€58 million) to ACWA Power UKS Green H2, a special purpose company co-owned by ACWA Power and Uzkimyosanoat (UKS), a state-owned chemical enterprise holding company in Uzbekistan. This package includes a $55 million (€49 million) senior loan from EBRD and up to $10 million (€9 million) in concessional financing from Canada under the Special Fund for the High Impact Partnership on Climate Action (HIPCA). Additionally, EBRD plans to provide an equity bridge loan of up to $5.5 million (€4.9 million) for the project.

“EBRD is proud to finance this landmark renewable hydrogen facility in Uzbekistan with our long-standing partner ACWA Power and their partner Uzkimyosanoat. This is the first of its kind across Central Asia, a region with some of the most carbon-intensive and hard-to-abate industries,” said Nandita Parshad, EBRD Managing Director for the Sustainable Infrastructure Group.

The new facility will produce up to 3,000 tonnes of renewable hydrogen annually, significantly contributing to reducing carbon emissions. It is expected to lower annual CO2 emissions by approximately 22,000 tonnes once operational, marking a substantial step towards Uzbekistan’s environmental goals.

This initiative follows EBRD’s previous support for a renewable hydrogen facility in Egypt in 2022 and aligns with Uzbekistan’s status as the leading recipient of EBRD funding in Central Asia for the past four years. To date, the EBRD has invested about €5 billion in 164 projects across Uzbekistan, primarily focusing on fostering private entrepreneurship.

The project is backed by the Japan-EBRD Cooperation fund and various international contributors, including Austria, Canada, Finland, the Netherlands, South Korea, Spain, Switzerland, TaiwanICDF, the United Kingdom, and the United States.