Green hydrogen for industrial decarbonisation: Central Asia and the South Caucasus - IRENA – International Renewable Energy Agency
Published February 06, 2026
Green Hydrogen for Industrial Decarbonisation: Central Asia and the South Caucasus
The International Renewable Energy Agency (IRENA) has published a report highlighting the significant potential of green hydrogen as a means of decarbonising industrial sectors in Central Asia and the South Caucasus. The report emphasizes the urgent need for these regions to transition towards cleaner energy sources, particularly in the context of global climate commitments and the decarbonisation of heavy industries.
Green hydrogen, produced through the electrolysis of water using renewable energy sources, offers a promising solution for reducing greenhouse gas emissions in industries such as steel, cement, and chemicals. The report outlines how the adoption of green hydrogen can play a critical role in achieving national and regional climate goals while fostering economic growth and energy security.
Current Energy Landscape
Central Asia and the South Caucasus are rich in natural resources, including fossil fuels, which have historically driven their economies. However, this reliance on hydrocarbons has resulted in significant environmental challenges, including high levels of carbon emissions. The region's energy landscape is undergoing a transformation, with an increasing focus on renewable energy sources, such as wind and solar power, to meet growing energy demands and reduce carbon footprints.
As countries in these regions commit to international climate agreements, they are also recognizing the need to diversify their energy portfolios. The report notes that the integration of green hydrogen into the energy mix can enhance energy security, create jobs, and stimulate economic development.
Green Hydrogen Potential
The report identifies several key factors that contribute to the potential for green hydrogen production in Central Asia and the South Caucasus:
- Abundant Renewable Resources: The regions possess significant solar and wind energy potential, which can be harnessed to produce green hydrogen. For instance, countries like Kazakhstan and Uzbekistan have vast areas with high solar irradiance, making them ideal candidates for solar-powered hydrogen production.
- Existing Infrastructure: The presence of existing natural gas infrastructure can facilitate the transportation and distribution of hydrogen. This infrastructure can be adapted to accommodate hydrogen, thereby reducing the need for new investments.
- Industrial Demand: Local industries are increasingly seeking sustainable alternatives to fossil fuels. The demand for green hydrogen in sectors such as steel and cement production presents a significant opportunity for economic transformation.
Policy Framework and Investment
To unlock the potential of green hydrogen, the report emphasizes the importance of supportive policy frameworks and investment strategies. Governments in Central Asia and the South Caucasus are encouraged to develop comprehensive hydrogen strategies that include:
- Regulatory Support: Establishing clear regulations and standards for hydrogen production, storage, and transportation will be crucial in building investor confidence and ensuring safety.
- Incentives for Investment: Financial incentives, such as subsidies or tax breaks, can stimulate private sector investments in green hydrogen projects. This will be essential for scaling up production and reducing costs.
- International Cooperation: Collaborating with international partners can enhance technology transfer and access to funding. Engaging with global initiatives focused on hydrogen development can also provide valuable insights and best practices.
Case Studies and Regional Initiatives
The report highlights several ongoing initiatives and case studies within the region that demonstrate the viability of green hydrogen projects:
- Kazakhstan: The country is actively pursuing its vision to become a leader in green hydrogen production. Recent investments in renewable energy projects, including solar and wind farms, are expected to support the establishment of hydrogen production facilities.
- Georgia: Georgia's strategic location and existing hydropower resources position it well for green hydrogen production. The government is exploring opportunities to integrate hydrogen into its energy system, particularly in the transportation sector.
- Uzbekistan: Uzbekistan is taking steps to develop its hydrogen economy by leveraging its renewable energy potential. The government has announced plans to invest in hydrogen production technologies and establish partnerships with international firms.
Challenges and Considerations
While the potential for green hydrogen in Central Asia and the South Caucasus is significant, several challenges must be addressed to facilitate its development:
- Cost Competitiveness: The current costs of green hydrogen production remain relatively high compared to conventional fossil fuels. Continued advancements in technology and economies of scale will be necessary to enhance competitiveness.
- Technical Expertise: Developing a skilled workforce capable of supporting hydrogen technologies is essential. Investment in education and training programs will be critical to building local expertise.
- Market Development: Establishing a market for hydrogen, including demand from industrial sectors and transportation, will be crucial for creating a sustainable hydrogen economy.
Conclusion
The potential for green hydrogen to contribute to industrial decarbonisation in Central Asia and the South Caucasus is substantial. By leveraging their abundant renewable energy resources and existing infrastructure, countries in these regions can transition towards a more sustainable energy future. However, achieving this potential will require coordinated efforts among governments, industries, and international partners to develop supportive policies, attract investments, and foster innovation.
As the world moves towards a low-carbon economy, the role of green hydrogen in facilitating this transition will become increasingly important. The findings of the IRENA report underscore the need for immediate action to harness the opportunities presented by green hydrogen, ensuring that Central Asia and the South Caucasus can play a pivotal role in the global energy landscape.
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