UzKimyoSanoat and ACWA Power secure $65M loan from EBRD for hydrogen project

UzKimyoSanoat and ACWA Power have reached an agreement with the European Bank for Reconstruction and Development (EBRD) on a loan for a "green" hydrogen production project, the company announced.

The signing of the loan and guarantee agreements took place on September 10. Under the terms of the tripartite documents, the EBRD will provide an Equity Bridge Loan to ACWA Power UKS Green H2 for project implementation.

As previously reported, the intermediate loan will amount to $5.5 million. In total, the bank plans to allocate $65 million for the project, including $10 million in concessional financing from Canada.

The plant, which will produce "green" hydrogen through electrolysis, will be built in Chirchik. The future facility will become the first of its kind in Central Asia and the CIS, according to UzKimyoSanoat.

"Green" Hydrogen in Uzbekistan In January 2023, it was revealed that a hydrogen and ammonia production plant is planned to be built in Chirchik. The final agreement between ACWA and UzKimyoSanoat was signed at the EBRD business forum.

According to the document, the project will be managed by the joint venture ACWA-UKS GH2, with ACWA holding an 80% share and UzKimyoSanoat holding 20%. The project is preliminarily estimated to cost $88 million.

The hydrogen produced at the plant will be used to synthesize ammonia and further manufacture nitrogen fertilizers. It is expected to produce up to 500,000 tons of ammonium nitrate annually and save 33 million cubic meters of natural gas.