Georgia joins the race to produce green hydrogen

Georgia, in the Caucasus mountains between Russia and Central Asia, has terrain that brings plentiful supplies of fast-flowing mountain water, which allows it to produce cheap, clean, abundant hydropower, making up 75–80% of its domestic energy mix. However, the Georgian government, realising that water currently spilled during the summer months would be put to better use producing hydrogen, has asked the European Bank for Reconstruction and Development (EBRD) to explore the country’s potential for generating green hydrogen which could then be blended and transported to end-users through existing gas pipelines.

The EBRD is to provide technical cooperation support to assess the investment requirements in Georgia for green hydrogen generation, as well as to upgrade existing assets to transport blended hydrogen to end-users.  The technical cooperation will run over the next few years, setting out a timeline for potential investments after that.

The agreement forms part of a broader transaction signed between Georgia’s GOGC energy company and the EBRD, to lend the company €217mn to help it refinance a corporate Eurobond in the wake of the economic slowdown caused by the COVID-19 pandemic. GOGC provides 20% of Georgia’s electricity and is the main government entity ensuring the reliability of gas supplies in the country.

‘Georgia is making a very timely move in terms of utilising its hydro potential and future-proofing its gas infrastructure to accept low carbon fuels. We are pleased to support them with these first steps,’ says Aida Sitdikova, Director and Head of Energy Eurasia, in the EBRD’s Sustainable Infrastructure Group.