BAKU, Azerbaijan, June 16. SOCAR plans to enter green hydrogen and ammonia projects, Vice President of SOCAR, Afgan Isayev, said at a panel discussion "Powering Azerbaijan's Green Transition: Renewable Energy as a Bankable Investment Opportunity" within the framework of Investment Outlook Session in Baku, Trend's correspondent reports from the event.
He remarked that Azerbaijan's energy future is built on diversification, and the country is gradually transitioning from the traditional oil and gas model to a balanced energy portfolio.
According to him, SOCAR has made a fundamental change in its strategy starting from 2023, identifying energy transition as a priority direction.
"If we express Azerbaijan's energy future in one word, it is diversification. We used to be a classic oil and gas company, but in 2023, we completely changed our strategy and added new elements to our energy mix," he said.
Isayev noted that according to Azerbaijan's 2030 targets, the share of renewable sources in the energy balance is expected to reach 30%, and the current dynamics indicate that this indicator may even increase to 34-38%.
"We are not giving up the status of a reliable oil and gas exporting country, we are simply adding new energy sources to this model. This is a transformation that creates opportunities not from an ideological but from an economic perspective," the SOCAR official emphasized.
According to him, increasing the renewable energy potential allows the country to save additional gas resources and direct these resources to regional and European markets.
Isayev added that in the medium term, SOCAR plans to enter low-carbon energy sectors, including green hydrogen and green ammonia projects. However, it was noted that economies of scale are still important for economic efficiency in this area.
"Technologies are rapidly becoming cheaper, and we expect costs to decrease in this area in the coming years, as in solar panels, wind turbines, and electrolysis equipment," he explained.
The SOCAR vice president noted that the company plans to become an energy company with a balanced portfolio by 2035 and reach the net zero emissions target by 2050.
He pointed out that SOCAR is working in three main directions to achieve these goals: decarbonization projects, organizational transformation, and the development of low-carbon businesses.
"In March 2024, SOCAR Green Company was established. This organization operates to accelerate energy efficiency and low-carbon projects," Isayev noted.
According to him, SOCAR is also expanding cooperation with international partners and, within this framework, is implementing joint projects with Masdar, ACWA Power, PowerChina, and other companies.
Isayev also said that the growing energy demand, especially against the background of the development of data centers and artificial intelligence technologies, further increases the need for new energy solutions.
"We are also expanding gas-fired electricity generation projects. Projects have been launched in Nakhchivan, 870 megawatts of generation capacity have been achieved in Türkiye, and the development of a new CCGT plant with a capacity of 500 megawatts continues in Serbia," the official added.
