- Kazakhstan will start its first green hydrogen project in Atyrau with Green Spark.
- The move aims to reduce dependence on oil, 78% of which is exported.
- A major 2M-tonne hydrogen plant, Hyrasia One, may start in 2027.
Kazakhstan aims to launch its initial experimental green hydrogen facility later this year as the Central Asian oil exporter seeks to establish itself as a key player in the development and transportation of the “fuel of the future.”
At the Power Central Asia-China conference in Astana earlier this week, Daulet Zhakupov, the interim head of the alternative energy department at KMG Engineering, a branch of the state-owned oil and gas firm KazMunayGaz, stated that the green hydrogen pilot project will take place at the firm's research institute located in the Kazakh oil city of Atyrau.
The initiative is being created in collaboration with the Atyrau-based technology firm Green Spark, a long-standing contractor at Kazakhstan's third-largest gas and condensate site, Karachaganak.
Kazakhstan presently earns billions of US dollars annually from its oil exports, with approximately 78% of the nation's total oil production sent abroad. A decrease in oil prices or demand — the latter becoming a more plausible long-term possibility as numerous nations aim to reduce hydrocarbon usage for net-zero goals — presents a considerable risk to Kazakhstan's economy.
As per recent predictions from the International Energy Agency, worldwide oil demand is projected to stabilize at approximately 105.5 million barrels per day by the close of this decade, whereas production capacity is expected to reach 114.7 million bpd by then.
In 2021, authorities revealed the Central Asian nation's venture into green hydrogen after President Kassym-Jomart Tokayev mandated ministries and KazMunayGaz to investigate hydrogen development.
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Tokayev, who described hydrogen as “the fuel of the future”, said that Kazakhstan, as an energy state, “should master the technology of its production, use and export”.
A year later, a framework agreement was established, creating a partnership between Kazakhstan and the European Commission for the provision of essential raw materials needed for battery production and green hydrogen development.
In October 2022, the Swedish-German developer Svewind reached an agreement with Astana to construct a large facility in the Kazakh oil region of Mangistau along the Caspian Sea, with an annual hydrogen production capacity of two million tonnes.
According to the company, when operating at maximum capacity, the facility — referred to as Hyrasia One — will need an annual net extraction of 50 million cubic meters of water, which is about 0.016% of the water flow from the rivers that supply the Caspian Sea. A conclusive investment decision is anticipated in 2026 to allow construction to start in 2027.