The 29th edition of the United Nations Climate Change Conference (COP 29) ongoing in Baku was the scene of a further step in the cooperation between Azerenerji JSC, the largest electrical power producer in the Republic of Azerbaijan, and Ansaldo Energia, among the world leaders in the power generation industry. The two state-owned companies signed a five-pillar Memorandum of Understanding (MOU) in the presence of the President of Azerenerji JSC, Baba Rzayev, and the CEO of Ansaldo Energia, Fabrizio Fabbri.
The first topic of the agreement concerns the joint implementation of new projects in the field of installation, maintenance, and modernization of power generation equipment towards more environmentally efficient systems in the territory of the Republic of Azerbaijan. The MOU also states the set-up of a hydrogen production plant localized in the Republic of Azerbaijan, envisaging the commissioning of a pilot plant using the electrolysers technology developed by Ansaldo Energia Group via its subsidiary Ansaldo Green Tech and the possible scale-up of the project. The third point of the agreement concerns the future implementation of hydrogen fired new power plant project using green hydrogen as a fuel. The MOU eventually mentions new staff training and know-how exchange initiatives and the joint participation in projects such as carbon capture and storage (CCS), nuclear small modular reactors (SMR) and energy storage systems by using hydrogen.
The signing of the MOU during the “energy day” of the COP 29 represents a further step in the strategic cooperation between Azerenerji JSC and Ansaldo Energia, also confirmed by the presence as main guest of the Italian company inside the Azerenerji stand set-up in the exhibition area of the event.
In 2023 Azerenerji commissioned Ansaldo Energia the supply of 4 AE94.3A gas turbines, with relative generators and control systems, for the complete refurbishment of Mingachevir Power Plant. This partnership will deliver the most advanced and sustainable thermal power station of the country, ensuring electricity supply for an equivalent of 1,2 million households and saving over 2 million tonnes of CO2 emissions per year. AE94.3A Ansaldo Energia’s gas turbine is already capable of burning up to 40% H2 in the fuel mix.
“As the result of modernization works carried out during past 20 years Azerenerji has achieved significant efficiency indicators, such as 2.9 billion cubic meters of natural gas savings and 5.58 million tons of CO2 emission reductions. One of our major goals is to support Azerbaijan in tackling climate change. In this regard, we have increased the capacity of renewables (mainly hydro) up to 270 MW in just 3 years and the energy transition process will continue. We are pleased with the partnership and support from Ansaldo Energia in decarbonizing the power sector of Azerbaijan”- stated Mr. Baba Rzayev, the president of Azerenerji OJSC.
“COP 29 is the ideal setting to consolidate our fruitful cooperation with Azerenerji, a strategic partner and promoter of a concrete and effective vision in the decarbonisation of power generation. We share with Azerenerji and with the Republic of Azerbaijan the focus on the importance of environmental, social, and economic sustainability towards the Net-zero target. – stated Fabrizio Fabbri, CEO of Ansaldo Energia - Leveraging on efficiency, operational flexibility, and H2-readiness of our gas turbines fleet, we are proud to contribute to the energy security and transition of the Republic of Azerbaijan by also sharing our expertise in the field of hydrogen production”.
On the sidelines of the MOU signing ceremony, Ansaldo Energia also formalized the acquisition of a significant amount of carbon credits generated by two hydroelectric plants owned by Azerenerji OJSC (SOCAR-1 bundle and SOCAR-2 bundle) in Kalbajar region of Azerbaijan Republic. With this commitment, Ansaldo Energia demonstrates its support to the country’s vision of energy transition, since the electricity generated from renewable sources, if higher than grid’s demand, will be stored in the form of hydrogen and subsequently used as fuel in gas turbines when electrical demand makes it necessary.