The Australian company Fortescue Future Industries (FFI) has signed a framework agreement with Azerbaijan’s Ministry of Energy to jointly study and develop up to 12 GW of renewable energy and green hydrogen projects in the country.
The agreement with FFI follows a Memorandum of Understanding (MoU) signed in July 2022 between Azerbaijan and the European Commission to accelerate the development and deployment of renewable energy generation and transmission capacity in the country.
In its nationally determined contribution (NDC) Azerbaijan set a target to reduce its greenhouse gas (GHG) emissions by 35% by 2030 compared to 1990 levels. The country also targets a 40% reduction in GHG emissions by 2050 (compared to 1990) and plans increase the share of renewables in the power capacity up to 30% by 2030.
At the end of 2020, renewables represented about 17% of Azerbaijan’s installed capacity with 1.3 GW (with 15% just for hydro). Only 6% of power generation came from renewables with 1.4 TWh. Azerbaijan is still very reliant on gas which represents 94% of power generation.