The Ministry of Energy and Fortescue Future Industries signed a framework agreement on the renewable energy and green hydrogen projects in Azerbaijan

A Framework agreement was signed between Ministry of Energy and Australia's Fortescue Future Industries (FFI) on joint cooperation on the study and development of renewable energy projects and the potential of "green hydrogen" in Azerbaijan.

The signing ceremony of the Framework Agreement, which contributes to the strengthening of cooperation between Azerbaijan and Fortescue Future Industries, was held online.

The agreement envisages the investigation and implementation of projects with a total capacity of up to 12 GW for the production of renewable energy and "green hydrogen" in Azerbaijan.

Energy Minister Parviz Shahbazov said that the strategic basis of this agreement is "Azerbaijan 2030: National Priorities of Socio-Economic Development," defined by the President of Azerbaijan, Ilham Aliyev: " A clean environment and "green growth" country priority, one of the five National Priorities, sets goals that coincide with this Agreement. Specific emphasis should be placed on the MoU signed in July this year between Mr Ilham Aliyev, the President of Azerbaijan, and Ms Ursula von der Leyen, the President of the European Commission, which clearly sets the stage for a green energy corridor between Azerbaijan and European Union.”

The Minister also added that in recent years, strategically important steps have been taken with international energy companies to create large-scale production capacities for renewable energy and green energy export: “As a result, Azerbaijan, along with transforming into a green energy country, will become an important and reliable partner for the European Union, supplying renewable energy and hydrogen after oil and natural gas. We believe that our cooperation with Fortescue Future Industries will contribute to the energy security and energy transition of partner countries.”

Dr Andrew Forrest, Fortescue Executive Chairman and Founder, said:

"Our discussions to date with the Government of Azerbaijan have been extremely positive and the signing of this Framework Agreement today further demonstrates the strong potential for this partnership. Right across the world we are seeing the catastrophic impacts of climate change, and we believe that green hydrogen is a practical and implementable solution that can help revolutionise the way we power our planet, help decarbonise heavy industry and create local jobs. Despite being historically an oil and gas country, Azerbaijan is well placed to join to the green industrial revolution due to its strategic location to bring green energy to European countries. This Framework Agreement signed today is a significant step in enabling Azerbaijan to meet the Government’s ambitious goals of reducing the country’s greenhouse gas emissions to 40 per cent below their 1990 levels by 2050."