Unlocking Kazakhstan’s hydrogen future, EU encouraged to increase support
Kazakhstan’s transition to green energy is far from simple; it plays a limited role in Kazakhstan’s industry, but hopes are rising for large-scale production.
This article is part of our special report EU-Kazakhstan relations: A strategic and economic evolution towards a regional and global role.
Kazakhstan has the potential to become a major player in the emerging hydrogen market, not only in the context of enhanced energy connectivity in Central Asia but also as a supplier to the European market.
Recently, Germany organised a training week on green hydrogen in Astana as part of a strategic push to promote and unlock Kazakhstan’s potential as a future hub for green hydrogen production.
Participating in the event, Kazakhstan’s Vice Minister of Energy, Bakytzhan Ilyas, emphasised the strategic importance of green hydrogen for sustainable economic development and climate goals.
With significant renewable energy resources and a strong industrial base, Kazakhstan is well-positioned for pilot projects and infrastructure development in this field. This was also highlighted by German Ambassador Monika Iwersen.
Challenges amid potential
According to an assessment by the European Bank for Reconstruction and Development (EBRD), Kazakhstan has good potential for large-scale production of both green and blue hydrogen.
The EBRD also highlights the country’s strategic position on the Silk Road, which links Europe and China, and identifies domestic demands for hydrogen in the refining, ammonia, and mining sectors.
Meanwhile, the United Nations Economic Commission for Europe (UNECE) advises caution in developing hydrogen production, particularly in the Central Asian region, where water scarcity is an issue.
For this reason, UNECE suggests focusing on blue hydrogen as a transitional solution. Kazakhstan can unlock additional opportunities only by comprehending the connections between different elements and implementing effective systems.
Not a simple task
In 2024, Kazakhstan’s Energy Ministry approved the concept for the development of hydrogen energy until 2040. By that time, at least 50 per cent of the planned total production is expected to be green hydrogen.
However, as Manuel Andresh, head of the Hydrogen Diplomacy Office in Astana, has acknowledged, the transition to green energy is far from simple. Green hydrogen currently plays a limited role in Kazakhstan’s industry.
It is mainly used in refineries and fertiliser production, but holds promise for decarbonising hard-to-abate sectors. The office is guiding Kazakh companies in shifting from fossil fuel-based to green hydrogen through free technical and financial analysis.
Nevertheless, Andresh is optimistic that the country’s favourable geography and experience in energy exports position it well to become a key green hydrogen exporter, particularly to Europe via routes like the Trans-Caspian International Transport Corridor.
Supplying the EU
At the Samarkand summit in early April, Kazakh President Kassym-Jomart Tokayev launched a major project involving his country, Azerbaijan, and Uzbekistan to deliver green energy to Europe via the Caspian-Black Sea corridor.
According to Dutch think tank Clingendael, this green energy corridor could allow the three countries to supply renewable electricity to the European market while the EU seeks to strengthen its energy security.
By positioning itself as a key producer and transport hub of renewable energy, green hydrogen and critical raw materials, the Caspian Sea region could become an alternative for the EU to diversify away from Russian energy supplies.
Although Russia’s influence on these countries challenges Europe’s energy security interests, investments could help the bloc strengthen its geopolitical standing in the region and secure access to critical raw materials.
Decarbonise first, exports later
Carnegie Endowment suggests that Kazakhstan should prioritise using green hydrogen to decarbonise its industries, rather than focusing solely on exports, given the slow development of global hydrogen markets and the lack of transport infrastructure.
Instead, decarbonising steel, chemicals, and refining industries could offer greater economic and environmental gains. The author cites Chile and Morocco as countries already shifting from exports to developing green industries for higher-value products.
Although Kazakhstan has the renewable resources to produce green hydrogen competitively and the development concept marks progress, it still lacks clear targets or incentives to drive industrial decarbonisation.
But with EU support in building regulatory frameworks, attracting investment, and promoting research, Kazakhstan has the potential to become a regional leader in clean industrial development, rather than relying on uncertain export markets.
READ the latest news shaping the hydrogen market at Hydrogen Central
Unlocking Kazakhstan’s hydrogen future, EU encouraged to increase support, source
