BAKU, Azerbaijan, June 16. SOCAR plans to enter
green hydrogen and ammonia projects, Vice President of SOCAR, Afgan
Isayev, said at a panel discussion “Powering Azerbaijan’s Green
Transition: Renewable Energy as a Bankable Investment Opportunity”
within the framework of Investment Outlook Session in Baku,
Trend’s
correspondent reports from the event.
He remarked that Azerbaijan’s energy future is built on
diversification, and the country is gradually transitioning from
the traditional oil and gas model to a balanced energy
portfolio.
According to him, SOCAR has made a fundamental change in its
strategy starting from 2023, identifying energy transition as a
priority direction.
“If we express Azerbaijan’s energy future in one word, it is
diversification. We used to be a classic oil and gas company, but
in 2023, we completely changed our strategy and added new elements
to our energy mix,” he said.
Isayev noted that according to Azerbaijan’s 2030 targets, the
share of renewable sources in the energy balance is expected to
reach 30%, and the current dynamics indicate that this indicator
may even increase to 34-38%.
“We are not giving up the status of a reliable oil and gas
exporting country, we are simply adding new energy sources to this
model. This is a transformation that creates opportunities not from
an ideological but from an economic perspective,” the SOCAR
official emphasized.
According to him, increasing the renewable energy potential
allows the country to save additional gas resources and direct
these resources to regional and European markets.
Isayev added that in the medium term, SOCAR plans to enter
low-carbon energy sectors, including green hydrogen and green
ammonia projects. However, it was noted that economies of scale are
still important for economic efficiency in this area.
“Technologies are rapidly becoming cheaper, and we expect costs
to decrease in this area in the coming years, as in solar panels,
wind turbines, and electrolysis equipment,” he explained.
The SOCAR vice president noted that the company plans to become
an energy company with a balanced portfolio by 2035 and reach the
net zero emissions target by 2050.
He pointed out that SOCAR is working in three main directions to
achieve these goals: decarbonization projects, organizational
transformation, and the development of low-carbon businesses.
“In March 2024, SOCAR Green Company was established. This
organization operates to accelerate energy efficiency and
low-carbon projects,” Isayev noted.
According to him, SOCAR is also expanding cooperation with
international partners and, within this framework, is implementing
joint projects with Masdar, ACWA Power, PowerChina, and other
companies.
Isayev also said that the growing energy demand, especially
against the background of the development of data centers and
artificial intelligence technologies, further increases the need
for new energy solutions.
“We are also expanding gas-fired electricity generation
projects. Projects have been launched in Nakhchivan, 870 megawatts
of generation capacity have been achieved in Türkiye, and the
development of a new CCGT plant with a capacity of 500 megawatts
continues in Serbia,” the official added.
