Environmentalists Urge Relocation of Hyrasia One Green Hydrogen Project

Kazakhstan’s Ministry of Ecology and Natural Resources is facing growing pressure from environmental experts to alter the course of the country's flagship green hydrogen initiative. The Public Council under the Ministry has recommended relocating key infrastructure of the €50 billion ($55 billion) Hyrasia One project, citing threats to biodiversity in the Mangistau region. Developed by the Swedish-German company Svevind Energy Group, Hyrasia One is poised to become Kazakhstan’s largest green hydrogen production facility, with plans to generate up to two million tonnes annually by 2030 using solar and wind power. But environmental groups argue that parts of the planned development risk causing irreversible ecological damage. In an official statement, the Public Council advised that the proposed “Rahim” and “Kanagat” renewable energy clusters be relocated to previously industrialized zones, such as former oil and gas fields, rather than pristine ecosystems home to endangered species. “It would be more practical for the company as well, as such territories already have existing infrastructure, including roads, power lines, and cellular coverage,” the council noted in its published protocol. Ecologists warn that the current project layout intersects with the habitat and migratory routes of the goitered gazelle, a species listed in Kazakhstan’s Red Book of endangered fauna. The installation of wind turbines, solar panels, roads, and transmission lines in these areas could fragment ecosystems and disrupt transboundary conservation initiatives involving Kazakhstan, Uzbekistan, and Turkmenistan. The development risks affecting several protected areas, including the Ustyurt Nature Reserve (and its proposed “Southern Ustyurt” extension), Kyzylsai Nature Park in Kazakhstan, Uzbekistan’s “South Ustyurt” National Park, and Turkmenistan’s Gaplangyr Reserve, home to the Sarykamysh and Shasenem wildlife sanctuaries. Council members also raised legal and procedural issues, alleging that land allocations for the project were made without proper legal oversight and that public consultations during the environmental impact assessment (EIA) process were inadequate. They further claim that Hyrasia One representatives have declined to attend two separate council sessions dedicated to the project. The council has formally submitted its findings and relocation proposal to the Presidential Administration, the Government of Kazakhstan, and regional authorities in Mangystau. As previously reported by The Times of Central Asia, Hyrasia One is central to Kazakhstan’s ambitions to become a key exporter of green energy to the European Union. The project may also benefit from emerging energy cooperation with China, further raising the stakes for its execution and environmental impact.

EBRD to Support Pilot Project for Renewable Hydrogen in Uzbekistan

The European Bank for Reconstruction and Development (EBRD) will finance Central Asia's first renewable hydrogen production project in Uzbekistan. The project includes the installation of a 20 MW electrolyzer and constructing a new 52 MW wind farm. The EBRD is providing a $65 million (€58 million) financing package to ACWA Power UKS Green H2, which is developing, designing, constructing, and operating the facility. This company is jointly owned by ACWA Power and Uzkimyosanoat (UKS), a large state-owned chemical holding company. Financing includes a $55 million senior loan from the EBRD and $10 million in concessional financing from Canada through the High Impact Partnership on Climate Change Special Fund (HIPCA). The EBRD also plans to provide an equity bridge loan of up to $5.5 million (€4.9 million) and up to $5.5 million (€4.9 million) for the project. The project, supported by the Japan-EBRD Cooperation Fund, will help replace “grey” hydrogen, derived from natural gas and widely used in producing ammonia fertilizers in Uzbekistan, with renewable hydrogen. The latter is recognized as a critical alternative for decarbonizing the fertilizer sector. The facility is expected to make up to 3,000 tons of hydrogen annually, reducing annual CO2 emissions by 22,000 tons. The Bank also noted that Uzbekistan, the leading recipient of EBRD financing in Central Asia, has already received about €5 billion under 164 projects, most of which support private entrepreneurship. The Times of Central Asia has previously written that the Asian Development Bank (ADB) has announced the launch of a five-year partnership strategy with Uzbekistan from 2024 to 2028. The strategy will support Uzbekistan's reforms in promoting the country's transition to a green economy, supporting private sector development and competitiveness, and stimulating investment in economic capital.