(MENAFN- Trend News Agency) BAKU, Azerbaijan, April 5. Azerbaijan may
supply hydrogen to Europe in a cost-effective way, Vladimir Rogov,
Managing Director and Partner of the Boston Consulting Group (BCG),
told trend .
"In Azerbaijan, we see a unique combination of all components
needed for the development of the hydrogen sector. There are
natural resources, infrastructure, and the end-consumer. And all
this in a compact geography. The potential of Azerbaijan's
renewable energy resources is extremely high, ensuring a strong
competitive advantage, namely, the low cost of green hydrogen
production," he said.
Rogov said referring to Global Solar Atlas that the solar
generation potential in Azerbaijan is comparable to the south of
Italy and is almost 1.5 times greater than Germany's, and the
potential of wind energy on the Absheron Peninsula is comparable to
the North Sea shelf areas.
"In terms of profits, the country could earn from $230-500
million per year, given the expected hydrogen price decrease in
Europe nearly twice, from current ±$11 to $5.8/kg. Thus, the full
cost of the green hydrogen delivered through the pipe can be very
competitive and allow for substantial margin," said the expert.
He believes that another strong advantage of Azerbaijan is its
ability to transport hydrogen, up to 10-15 percent of the flow,
relatively efficiently and cost-effectively along existing gas
pipeline networks to Europe, especially if compared to exports from
sub-Saharan Africa or the highly inefficient transport of liquefied
hydrogen from overseas.
"It makes sense to also build new pipelines, envisioning the
future demand for hydrogen. For example, given the TAP volume of 11
billion m3 per year, the potential for transporting hydrogen from
Azerbaijan is 40-85 thousand tons per year (5-10% of the gas
volume). This will make only 2-4 percent of 2.3 million tons of the
projected hydrogen demand in Italy in 2030," noted Rogov.
---
Follow the author on Twitter: @lyaman_zeyn
Comments
No comment