Azerbaijan
Country: Azerbaijan
Document type: National Strategy
Title: Azerbaijan National Hydrogen Strategy Outlook
Released: November 2024
Summary Points:
The National Hydrogen National Strategy Outlook presents two scenarios to 2050 – Balanced Scenario, Accelerated Scenario – and an Ambitious Scenario to 2060.
The Balanced Scenario includes green hydrogen production reaching approximately 0.5 million tonnes per annum by 2050 based, in part, on deployment of renewables generation capacity that is considered ambitious but not overly so.
The Accelerated Scenario includes green hydrogen production reaching approximately 1.1 million tonnes per annum by 20250 based, in part, through innovation in offshore wind development and learnings from developed offshore wind markets.
The Ambitious Scenario tracks green hydrogen production beyond 2050 to 2060 (reaching approximately 1.9 million tonnes per annum) and to be achieved reflects a significant increase in investment in offshore wind. The Ambitious Scenario includes a significant increase in hydrogen export volumes (compared to the Accelerated Scenario).
The required installed power generation capacity associated with the Balanced Scenario in 2050 is at approximately 8.9 GW, for the Accelerated Scenario in 2050 is at approximately 17.7 GW, and for the Ambitious Scenario in 2060 is at approximately 30 GW.
Water demand estimates for the Balanced, Accelerated and Ambitious Scenarios are approximately 17,000 m3 per day (2050), 40,000 m3 per day (2050) and 80,000 m3 per day (2060) respectively.
In terms of utilisation, in the short term (up to 2040) the replacement of existing hydrogen demand – ammonia/urea production, methanol production, oil refineries – with clean hydrogen is considered the easiest pathway to market for clean hydrogen projects. In this period, new markets for use of clean hydrogen includes in maritime shipping, aviation, iron and steel and some aspects of land transport.
Longer term (post 2040) utilisation options include uses in high temperature heat purposes and in meeting peaking power demands.
March 2025