📋 Tender Overview
TCRS: 21695
Status: Approved
Location: Azerbaijan
Business Sector: Energy
Notice Type: Public
PSD Disclosed: 20 Jun 2025
Project Description
Azerbaijan is in a strong position to develop a low-carbon hydrogen sector, boasting promising renewable energy resources in the Caspian Sea and East Azerbaijan and direct access to natural gas reserves like the Shah Deniz field. This advantageous position sets the stage for both green and blue hydrogen initiatives, with the potential to store captured carbon in depleted gas fields. For these reasons, the hydrogen produced in the country will be cost competitive, especially with optimized use of wind and solar energy sources, rivalling most of the EU countries.
Water availability poses a significant concern, although strategies like recycled water usage could mitigate costs. Integrating low-carbon alternatives into various sectors, especially transportation and district heating, aligns with Azerbaijan's export-oriented strategy, particularly leveraging existing gas pipelines.
In addition to its export potential, domestic consumption of hydrogen presents a strategic opportunity for Azerbaijan. By integrating hydrogen into local industries the country can decarbonise hard to abate sectors and support national decarbonization goals.
The Southern Gas Corridor presents a vital avenue for exporting hydrogen to Europe, with potential collaboration needed among regional stakeholders. Azerbaijan's commitment to reducing greenhouse gas emissions, exemplified by its Nationally Determined Contributions and draft National Strategy for Low Carbon Development, underscores its dedication to the hydrogen economy. A national roadmap, coupled with strategic investments, can propel Azerbaijan into a leading position in the global hydrogen market.
The proposed assignment aims at providing the required information to support the Government of Azerbaijan to plan the recommended regulatory and policy actions required to achieve its potential in the hydrogen sector and fulfil the hydrogen strategy presented during COP-29.
