Acwa Power and Azerbaijan’s state oil company Socar have agreed to work together to decarbonize some of Socar’s downstream assets through the production of green hydrogen, according to a joint press release. Information about the value and timeline for the project has not yet been disclosed.

The details: The project’s initial phase will focus on Socar’s carbamide fertilizer facility. The two will also conduct feasibility studies on green fertilizers, with Acwa Power taking the lead on renewable-energy production.

Acwa Power has a strong foothold in Baku’s renewables industry: The renewables giant signed an MoU with the UAE's Masdar and Socar to develop 500 MW of renewable energy projects in Azerbaijan last November and is currently building the region's largest 240 MW wind power plant in the country, the statement reads. The company also signed a roadmap agreement in October 2023 to develop a 200 MW onshore wind farm with battery storage facilities and a cooperation agreement in February 2023 that will see the company set up a 1.5 GW offshore wind energy project. Earlier in 2022, Acwa broke ground on another 240 MW wind project in Azerbaijan with a reported investment ticket of USD 300 mn.

Socar also has projects in place with the UAE: The UAE’s Adnoc and Socar signed an agreement to collaborate on developing low-carbon energy technologies last December. Masdar also signed an agreement with Socar last year to develop renewables projects with a combined capacity of 4 GW.

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