BAKU, Azerbaijan, June 6. For Azerbaijan the landed cost of green hydrogen in export markets will likely be higher than that of green hydrogen from other markets as many of these competing markets (e.g., those around North Sea) have stronger offshore winds (averaging over 10 m/s) and fewer logistical constraints in bringing their product to market, Trend reports with reference to the Offshore Wind Roadmap for Azerbaijan.
The document was released by the Ministry of Energy of the Republic of Azerbaijan, the World Bank and the International Finance Corporation (IFC).
“From a domestic perspective, production of green hydrogen can play an important role in the high growth scenario, particularly where excess generation can be used to produce hydrogen for energy storage, transport, industry, or the production of other green fuels. In this case, the viability of green hydrogen will be determined by domestic economics (for example, the competitiveness of green hydrogen versus imported fuel for road vehicles),” reads the document.
Reportedly, for hydrogen export through pipelines there may be a long-term case for green hydrogen, although this would need to account for an estimated 10 percent transport cost increase to the delivered price, thus impacting its competitiveness in export markets. Further barriers to high volume hydrogen export exists as current pipelines would require technical adaptation to carry pure or blended hydrogen, and because the existing pipeline capacity currently is fully contractually committed to natural gas export through to 2040. This option, and the required cost of hydrogen, can be explored further with potential offtakers and consumers in the EU and neighboring markets.
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