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Kazakhstan to facilitate Europe’s reduced reliance on fossil fuels, including hydrogen.
Sharm el-Sheikh, Egypt – As COP27 concludes and pressure mounts on summit participants to gradually reduce reliance on fossil fuels, Europe’s gaze turns to Kazakhstan – whose adoption of its first low-carbon strategy, capacity to supply minerals needed for the electric revolution and the potential to export hydrogen – make it central to Europe’s decarbonisation efforts.
The country’s growing renewable energy sector, as well as its willingness to invest in emerging industries such as green hydrogen, are drawing strength from the top of the government, with President Tokayev strongly backing projects to transform Kazakhstan into a “green powerhouse”.
Supplying Minerals for Decarbonisation Kazakhstan, historically best known for its hydrocarbon reserves and the production hub of Exxon, Chevron, Total and Shell, is emerging as a key factor in Europe’s transition to green energy.
It is already a major producer of minerals that are strategically critical for decarbonization – in 2021 alone, Kazakhstan produced more than half a million tons of copper and exported over $500 million worth of nickel to the European Union. In addition, Kazakhstan’s abundance of rare earth minerals ideally positions it as a key supplier for the electrical revolution.
Kanat Sharlapaevthe executive director of Baiterek Holding, an institution established to support sustainable economic development in Kazakhstan, points out:
The world needs to double copper production to achieve the carbon transition in the next 15-20 years.
“Kazakhstan will play a key role in facilitating Europe’s carbon transition in two ways.” Firstly, by supplying materials to support the transition and secondly, by supplying clean energy sources. A $50 billion deal has already been signed to produce green hydrogen in Kazakhstan to help Europe reduce its reliance on fossil fuels.
However, the extraction and production of these strategic assets must themselves be carbon efficient.
Aida SitdikovaDirector of the Sustainable Infrastructure Group, EBRD stated:
Kazakhstan’s carbon intensity is a challenge, 70% is still coal-fired.
“By the time the carbon cap adjustment is available in 2026, Kazakhstan will face a competitiveness issue.” In order to be able to support global decarbonisation with rare earth minerals and metals, they must be procured green”.
“The EBRD has financed 800 MW of renewable energy in Kazakhstan with developers from the UK, France, Germany, China and we have supported the development of the regulatory environment for renewable energy, enabling other lenders to join.
Carbon neutrality strategy
Kazakhstan has taken significant steps to address its carbon emissions – at COP26 in Glasgow, President Kassim-Jomart Tokayev announced his country’s ambition to be carbon neutral by 2060. This year in Sharm el-Sheikh, Prime Minister Smailov announced the “Low Carbon Development Strategy” , of which Kazakhstan will establish 7 GV of renewable energy capacity that will be built by 2030.
This policy announcement complements the president’s existing “Green Economy Plan,” which sets a goal of getting 50% of the nation’s energy from renewable sources by 2050 and achieving carbon neutrality by 2060.
Arman KashkinbekovHonorary Executive Director and Board Member of the Association of Renewable Energy Sources of Kazakhstan noted:
Kazakhstan has committed to achieving carbon neutrality by 2060 through renewable energy sources – which have become a true engine of the green economy, providing the country with new power plants and high profitability for investors.
“Furthermore, global moves to reduce tariffs for renewable energy, along with inexhaustible natural potential, make the realization of carbon neutrality earlier than the stated period not only probable, but probable.”
Last year alone, 19 new renewable energy facilities were put into operation that will deliver a total of 393 MW, reflecting a 14.6% increase in renewable energy production compared to the previous year. By 2025, another 53 projects with a capacity of 1,074 MW will be completed, of which 19 are hydroelectric power plants, 23 of which are wind power plants and 7 solar power plants.
Green hydrogen hub
Kazakhstan’s renewable energy potential allows it not only to reduce its reliance on fossil fuels and produce EV minerals in a responsible manner, but also to become a leading producer and exporter of renewable hydrogen.
Giles RedpathCEO of Hive Energy, a renewables developer currently working on three major hydrogen projects in South Africa, Spain and Chile, said:
Kazakhstan has incredible renewable resources, its solar yields are on par in some areas with southern Spain, its wind yields are very strong and as good as South Africa.
“There are not many places in the world where you have such good solar and wind together, which makes it a very good combination of factors for hydrogen production in Kazakhstan.”
This attitude is shared by other large producers of renewable energy sources:
On October 27, 2022, Svevind Energi Group signed a $50 billion contract to produce two million tons of green hydrogen in Kazakhstan annually by building a 40 GW wind and solar plant and 20 GW water electrolysis production mainly for export. This will be equivalent to 20% of the European target for green hydrogen by 2030.
On November 15, 2022, the Government of Kazakhstan and Fortescue Future Industries signed a framework agreement on the implementation of green hydrogen production projects, which could make the country the world’s largest supplier of this fuel in less than seven years.
Supporting Kazakhstan’s ambitious environmental goals and aspirations to lead the world
The decarbonization project is a governance reform program led by President Tokayev.
By overhauling state and economic institutions to ensure transparency and competitiveness, and by giving political support to the green agenda, Tokayev is accelerating Kazakhstan’s transformation into an increasingly important player contributing to Europe’s net-zero transition and the development of renewable energy sources.
READ the latest news shaping the hydrogen market at Hydrogen Central
Kazakhstan to facilitate reduction of Europe’s reliance on fossil fuels November 16, 2022
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