{"id":51113,"date":"2024-05-17T14:00:50","date_gmt":"2024-05-17T13:00:50","guid":{"rendered":"https:\/\/www.climatechangenews.com\/?p=51113"},"modified":"2024-05-21T10:49:36","modified_gmt":"2024-05-21T09:49:36","slug":"azerbaijan-pursues-clean-energy-to-export-more-god-given-gas-to-europe","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2024\/05\/17\/azerbaijan-pursues-clean-energy-to-export-more-god-given-gas-to-europe\/","title":{"rendered":"Azerbaijan pursues clean energy to export more &#8216;god-given&#8217; gas to Europe"},"content":{"rendered":"<p><strong>An ocean of 570,000 solar panels stretches out as far as the eye can see across an arid landscape an hour\u2019s drive from Azerbaijan\u2019s capital Baku. In the sun-baked hills of Garadagh, a country built on oil and gas is taking its first steps towards what it bills as a \u201cgreen\u201d future.\u00a0\u00a0<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">This is Azerbaijan\u2019s first large-scale solar power plant. It opened last October and the Emirati company developing it, Masdar, <\/span><a href=\"https:\/\/masdar.ae\/en\/renewables\/our-projects\/garadagh-area-60-solar-photovoltaic-power-plant\"><span style=\"font-weight: 400;\">says it can<\/span><\/a><span style=\"font-weight: 400;\"> power 110,000 homes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Climate Home visited the solar park as part of a media tour organised and sponsored by the Azerbaijan COP29 Presidency, which is arranging the UN climate summit in Baku this November.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the park&#8217;s opening ceremony, in front of Sultan Al-Jaber &#8211; Masdar\u2019s CEO who led the COP28 climate summit in Dubai &#8211; Azerbaijan\u2019s President Ilham Aliyev <\/span><a href=\"https:\/\/president.az\/en\/articles\/view\/61984\/videos\"><span style=\"font-weight: 400;\">boasted<\/span><\/a><span style=\"font-weight: 400;\"> about his country\u2019s determination in \u201cmoving towards a green agenda\u201d.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThis is our contribution not only to the future development of Azerbaijan but to the issues related to climate change,\u201d he told the assembled dignitaries.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But despite this rhetoric, climate scientists have questioned Azerbaijan\u2019s climate credentials as it prepares to host the COP29 summit.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An increase in renewable energy production does not mean Azerbaijan is planning to leave its vast oil and gas reserves in the ground. <\/span><a href=\"https:\/\/president.az\/en\/articles\/view\/65703\"><span style=\"font-weight: 400;\">Aliyev said<\/span><\/a><span style=\"font-weight: 400;\"> last month that Azerbaijan will try to sell abroad the gas it saves by not using it in power stations at home. Europe is the main target customer, as it shifts away from Russian gas supplies.<\/span><\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2024\/05\/15\/in-nagorno-karabakh-azerbaijans-net-zero-vision-clashes-with-legacy-of-war\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"><strong>In Nagorno-Karabakh,<\/strong> Azerbaijan\u2019s net zero vision clashes with legacy of war<\/span><\/a><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">On top of selling its surplus, Azerbaijan is planning to extract more gas thanks, in part, to fresh investments from foreign fossil fuel giants like <\/span><a href=\"https:\/\/www.bp.com\/content\/dam\/bp\/country-sites\/en_ge\/georgia\/home\/pressreleases\/2023%20full%20year%20results.pdf\"><span style=\"font-weight: 400;\">Britain\u2019s BP<\/span><\/a><span style=\"font-weight: 400;\">, France\u2019s TotalEnergies and <\/span><a href=\"https:\/\/www.adnoc.ae\/en\/News-and-Media\/Press-Releases\/2023\/ADNOC-to-Acquire-30-Equity-Stake-in-Absheron-Gas-Field\"><span style=\"font-weight: 400;\">Emirati oil giant ADNOC<\/span><\/a><span style=\"font-weight: 400;\">, which Al-Jaber also heads.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bill Hare, CEO of climate science non-profit group Climate Analytics, called Azerbaijan\u2019s plans \u201ca fantasy\u201d. \u201cRamping up renewables won\u2019t make a dent in emissions unless they displace fossil fuels in the system,\u201d he told Climate Home. \u201cYou can\u2019t tackle climate change without getting rid of fossil fuels.\u201d\u00a0<\/span><\/p>\n<p>A spokesperson for COP29 said gas is &#8220;an ideal transition fuel in the production of electricity&#8221;. In emailed comments, they added that gas exported to Europe can replace coal power &#8211; which currently provides around 15% of the EU\u2019s electricity &#8211; in the short to medium-term, thereby reducing greenhouse gas emissions.<\/p>\n<p><span style=\"font-weight: 400;\">Azerbaijan is not alone in pursuing both renewable energy and fossil fuel production. Most fossil fuel producers &#8211; including wealthy nations like the US, UK and Canada &#8211; have no plans to stop producing oil and gas. That\u2019s despite the <\/span><a href=\"https:\/\/www.climatechangenews.com\/2021\/05\/18\/iea-end-fossil-fuel-expansion-now-net-zero-energy-emissions-2050\/\"><span style=\"font-weight: 400;\">International Energy Agency (IEA) warning<\/span><\/a><span style=\"font-weight: 400;\"> that new fossil fuel extraction projects are not compatible with limiting global warming to 1.5C.<\/span><\/p>\n<p>The COP29 spokesperson said Azerbaijan&#8217;s strategy does not contradict IEA scenarios, noting those do not exclude continued investment in existing oil and gas assets and approved projects.<\/p>\n<h3><b>A fossil fuel economy<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Azerbaijan\u2019s fossil fuel industry is steeped in history. As early as the 13th century, Italian explorer Marco Polo <\/span><a href=\"https:\/\/www.nytimes.com\/2024\/01\/11\/climate\/tackling-climate-change-in-the-birthplace-of-oil.html#:~:text=Oil%20has%20been%20used%20in,may%20load%20there%20at%20once.\"><span style=\"font-weight: 400;\">wrote of<\/span><\/a><span style=\"font-weight: 400;\"> Baku\u2019s \u201cstream of oil in such abundance that a hundred ships may load there at once\u201d.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the 19th century, Azerbaijan gave birth to modern crude refining, and by the 20th century it <\/span><a href=\"https:\/\/minenergy.gov.az\/en\/neft\/neft-senayesinin-inkisaf-tarixi#:~:text=Azerbaijan%20produced%2011%20million%20tons,the%20world%20market%20in%201880.\"><span style=\"font-weight: 400;\">accounted<\/span><\/a><span style=\"font-weight: 400;\"> for around half of the world\u2019s oil production, helping fuel the Soviet Union\u2019s victory in World War Two.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Oil and gas remain omnipresent today. The Flame Towers, Baku\u2019s iconic skyscrapers, are a symbol of fossil fuel wealth. At night, their facades light up to display flickering flames in a reference to the naturally-occurring fires produced by gas leaks that <\/span><a href=\"https:\/\/edition.cnn.com\/travel\/article\/yanar-dag-azerbaijan-land-of-fire\/index.html\"><span style=\"font-weight: 400;\">earned <\/span><\/a><span style=\"font-weight: 400;\">Azerbaijan its name, \u201cThe Land of Fire\u201d.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The logo of SOCAR, the state-owned oil and gas firm, <\/span><a href=\"https:\/\/www.affa.az\/index.php\/partners\/socar\/1494#:~:text=The%20State%20Oil%20Company%20of,Azerbaijan%20and%20AFFA%20since%202003.\"><span style=\"font-weight: 400;\">emblazons<\/span><\/a><span style=\"font-weight: 400;\"> the national football team shirts, while one of the country\u2019s oldest oil fields sits just behind Baku\u2019s Olympic Stadium, the venue for the COP29 climate summit.\u00a0<\/span><\/p>\n<div id=\"attachment_51132\" style=\"width: 810px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.climatechangenews.com\/2024\/05\/17\/azerbaijan-pursues-clean-energy-to-export-more-god-given-gas-to-europe\/oil-field-baku\/\" rel=\"attachment wp-att-51132\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-51132\" class=\"size-full wp-image-51132\" src=\"https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17130255\/oil-field-Baku.jpg\" alt=\"oil field Baku\" width=\"800\" height=\"440\" srcset=\"https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17130255\/oil-field-Baku.jpg 800w, https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17130255\/oil-field-Baku-300x165.jpg 300w, https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17130255\/oil-field-Baku-600x330.jpg 600w, https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17130255\/oil-field-Baku-112x63.jpg 112w, https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17130255\/oil-field-Baku-768x422.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><p id=\"caption-attachment-51132\" class=\"wp-caption-text\">Oil fields on the outskirts of Baku, Azerbaijan, April 2o24. Photo: Matteo Civillini<\/p><\/div>\n<p><span style=\"font-weight: 400;\">By global standards, Azerbaijan is no longer a major fossil fuel producer, pumping less than 1% of the world\u2019s oil and gas. But its economy remains heavily dependent on the income they generate. Fossil fuels make up over 90% of all exports and <\/span><a href=\"https:\/\/carbontracker.org\/reports\/petrostates-energy-transition-report\/\"><span style=\"font-weight: 400;\">64%<\/span><\/a><span style=\"font-weight: 400;\"> of government revenue.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the Petersberg Climate Dialogue in Berlin last month, Aliyev said that \u201chaving oil and gas deposits is not our fault. It&#8217;s a gift from God. We must not be judged by that. He added that \u201cour oil and gas will be needed for many more years, including in European markets\u201d.<\/span><\/p>\n<h3><b>A shrinking market?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">European countries have historically been the main destination market for Azerbaijani oil and gas, and flows <\/span><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-12-10\/azerbaijan-says-it-s-on-track-to-double-gas-exports-to-europe\"><span style=\"font-weight: 400;\">have been rising<\/span><\/a><span style=\"font-weight: 400;\"> in the wake of Russia\u2019s invasion of Ukraine.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As Europe tried to wean itself off Moscow\u2019s supplies, the European Commission went looking around the world for alternative sources of gas to keep the lights on and curb skyrocketing prices. In Azerbaijan, it struck<\/span><a href=\"https:\/\/www.reuters.com\/business\/energy\/eu-signs-deal-with-azerbaijan-double-gas-imports-by-2027-2022-07-18\/\"><span style=\"font-weight: 400;\"> a new deal<\/span><\/a><span style=\"font-weight: 400;\"> to double gas exports by 2027.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Baku is now scrambling to make good on that pact, while using it as a lever to expand its lucrative gas industry. The country could<\/span><a href=\"https:\/\/www.globalwitness.org\/en\/press-releases\/cop29-host-country-priming-pumps-huge-hike-gas-production\/\"><span style=\"font-weight: 400;\"> boost<\/span><\/a><span style=\"font-weight: 400;\"> its gas production by more than a third over the next decade, according to data analysis by campaigning group Global Witness.\u00a0<\/span><\/p>\n<div class=\"flourish-embed flourish-chart\" data-src=\"visualisation\/17990806\"><script src=\"https:\/\/public.flourish.studio\/resources\/embed.js\"><\/script><\/div>\n<p><span style=\"font-weight: 400;\">\u201cWe are largely investing in increasing our gas production,\u201d said Aliyev in Berlin, \u201cbecause Europe needs more gas from new sources.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But energy experts question that reasoning. While looking for new gas supplies in the short term, the war in Ukraine also prompted the EU to fast-track its transition towards renewable sources of energy. Its strategic energy <\/span><a href=\"https:\/\/www.e3g.org\/news\/declining-eu-gas-demand-diminishes-need-for-us-liquified-natural-gas\/#:~:text=The%20European%20Union%20%E2%80%93%20a%20shrinking,overall%20gas%20demand%20by%202030.\"><span style=\"font-weight: 400;\">plan,<\/span><\/a><span style=\"font-weight: 400;\"> laid out in 2022, would see overall gas demand in the bloc halve by 2030.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThere will be a lot of supply globally and not that much demand on the European side,\u201d said E3G analyst Maria Pastukhova. \u201cLooking at the amounts alone, the EU will not need any additional gas from Azerbaijan if it delivers on its energy transition policies.\u201d<\/span><\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2024\/02\/26\/clean-cheap-or-fair-which-countries-should-pump-the-last-oil-and-gas\/#:~:text=The%20cleanest%20oil%20and%20gas,Trinidad%20and%20Tobago%2C%20and%20Turkmenistan.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"><strong>Clean, cheap or fair<\/strong> \u2013 which countries should pump the last oil and gas?<\/span><\/a><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">But much will also depend on what kind of gas the block will continue to rely on. Norway, Europe\u2019s top supplier, Algeria and Azerbaijan provide it through pipelines, while the United States and Qatar ship liquefied natural gas (LNG) to the continent.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt\u2019s hard to say at the moment [which supplies will remain],\u201d added Pastukhova. \u201cBut it isn\u2019t very likely that Azerbaijan can continue to bank on crazy gas revenues from the EU. We don\u2019t see readiness from European buyers to sign long-term contracts beyond 2035.\u201d\u00a0<\/span><\/p>\n<h3><b>Sell, don\u2019t burn<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Meanwhile, Baku also wants to ensure that its gas is channelled towards the lucrative export market not burned at home.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Central to this strategy is the rollout of renewable energy. With strong winds blowing from the Caspian Sea and sun shining for a large part of the year, Azerbaijan <\/span><a href=\"https:\/\/www.iea.org\/reports\/azerbaijan-energy-profile\/energy-system-transformation\"><span style=\"font-weight: 400;\">boasts<\/span><\/a><span style=\"font-weight: 400;\"> significant clean energy prospects.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But that potential has so far been largely untapped. Renewable sources, mainly from <\/span><a href=\"https:\/\/globalenergymonitor.org\/projects\/global-hydropower-tracker\/tracker-map\/\"><span style=\"font-weight: 400;\">three hydro power stations<\/span><\/a><span style=\"font-weight: 400;\">, produced only 7% of Azerbaijan\u2019s electricity i<\/span><a href=\"https:\/\/minenergy.gov.az\/en\/alternativ-ve-berpa-olunan-enerji\/azerbaycanda-berpa-olunan-enerji-menbelerinden-istifade#:~:text=56.6%20mln%20kWh%20of%20electricity,up%207%20%25%20of%20total%20production.\"><span style=\"font-weight: 400;\">n 2023<\/span><\/a><span style=\"font-weight: 400;\">. The government wants to increase that to 30% by 2030.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If that target is met, <\/span><a href=\"https:\/\/president.az\/en\/articles\/view\/65703\"><span style=\"font-weight: 400;\">Aliyev says<\/span><\/a><span style=\"font-weight: 400;\"> that solar and wind will pump 5 gigawatts of clean electricity into the national grid, freeing up \u201cat least\u201d 5 billion cubic metres of gas for the European market.<\/span><\/p>\n<div class=\"flourish-embed flourish-chart\" data-src=\"visualisation\/18002540\"><script src=\"https:\/\/public.flourish.studio\/resources\/embed.js\"><\/script><\/div>\n<p><span style=\"font-weight: 400;\">At Masdar\u2019s sprawling solar park in Garadagh, this plan is being rolled out. The park spans the equivalent of 770 football pitches, but was built in just under two years. It cost $262 million, with multilateral development banks <\/span><a href=\"https:\/\/www.ebrd.com\/news\/2022\/ebrd-invests-us-214-million-in-pioneering-solar-plant-in-azerbaijan.html\"><span style=\"font-weight: 400;\">stumping up<\/span><\/a><span style=\"font-weight: 400;\"> just under half of that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Speaking to journalists inside the plant\u2019s control room, Kamran Huseynov, deputy director of the Azerbaijan Renewable Energy Agency, said eight more solar and wind projects are being developed for the coming years. \u201cWe are quite sure we can reach the target [of 30% renewables capacity] by 2028,\u201d he added.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As in Garadagh, foreign energy companies will be at the helm of those eight projects. Masdar <\/span><a href=\"https:\/\/masdar.ae\/en\/news\/newsroom\/masdar-signs-1gw-clean-energy-agreement-in-azerbaijan\"><span style=\"font-weight: 400;\">will build<\/span><\/a><span style=\"font-weight: 400;\"> two more solar parks and one onshore wind farm. Saudi Arabia\u2019s ACWA Power <\/span><a href=\"https:\/\/area.gov.az\/en\/page\/layiheler\/cari-layiheler\/240-mvt-kulek-elektrikstansiyasi\"><span style=\"font-weight: 400;\">is erecting<\/span><\/a><span style=\"font-weight: 400;\"> a wind farm just north of Baku by the Caspian Sea.<\/span><\/p>\n<h3><b>Renewables-processed fossil fuels?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Later this year, BP is expected to start building a solar farm in the district of Jabrayil. This is one of the territories Azerbaijan captured after a long-running dispute with Armenia centred on the Nagorno-Karabakh region.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Baku seized control of these areas in a two-part military offensive that started in 2020 and ended last autumn. As a result, some 136,000 ethnic Armenians who had lived in Nagorno-Karabakh fled in a mass exodus which, according to Armenia and the EU Parliament, amounted to \u201cethnic cleansing\u201d. Azerbaijan has rejected those accusations.\u00a0<\/span><\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2024\/05\/15\/in-nagorno-karabakh-azerbaijans-net-zero-vision-clashes-with-legacy-of-war\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"><strong>In Nagorno-Karabakh,<\/strong> Azerbaijan\u2019s net zero vision clashes with legacy of war<\/span><\/a><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">The Azeri government is now <\/span><a href=\"https:\/\/www.climatechangenews.com\/2024\/05\/15\/in-nagorno-karabakh-azerbaijans-net-zero-vision-clashes-with-legacy-of-war\/\"><span style=\"font-weight: 400;\">promoting a green vision<\/span><\/a><span style=\"font-weight: 400;\"> for Nagorno-Karabakh which involves the construction of government-branded \u201cnet zero\u201d villages. It has also designated the region as a \u201cgreen energy zone\u201d, aiming to attract investment in renewable energy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">BP was the first major international energy firm to jump at that opportunity. In 2022, the company\u2019s regional president for Azerbaijan, Georgia and Turkey, praised Baku\u2019s efforts to turn Karabakh into \u201cthe heart of sustainable development\u201d.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">BP wants electricity produced from Jabrayil\u2019s solar power plant to make some of its vast oil and gas operations in Azerbaijan less dirty.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The British energy giant runs the Sangachal terminal, one of the world\u2019s largest oil and gas processing facilities and the starting point for the pipelines transporting gas to Europe. Processing all of this oil and gas requires power, which BP currently gets from burning gas in generators.<\/span><\/p>\n<div id=\"attachment_51123\" style=\"width: 810px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.climatechangenews.com\/2024\/05\/17\/azerbaijan-pursues-clean-energy-to-export-more-god-given-gas-to-europe\/dcim100mediadji_0015-jpg\/\" rel=\"attachment wp-att-51123\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-51123\" class=\"size-full wp-image-51123\" src=\"https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17113905\/TANAP_1.jpg\" alt=\"\" width=\"800\" height=\"450\" srcset=\"https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17113905\/TANAP_1.jpg 800w, https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17113905\/TANAP_1-300x168.jpg 300w, https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17113905\/TANAP_1-600x337.jpg 600w, https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17113905\/TANAP_1-112x63.jpg 112w, https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17113905\/TANAP_1-768x432.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><p id=\"caption-attachment-51123\" class=\"wp-caption-text\">The Sangachal oil and gas terminal in Azerbaijan. Photo: Azerbaijan Presidency<\/p><\/div>\n<p><span style=\"font-weight: 400;\">According to Elnur Soltanov, Azerbaijan\u2019s deputy energy minister and the COP29 CEO, these are \u201cvery inefficient\u201d and produce \u201csome of the dirtiest electricity\u201d in the country. After being electrified, the fossil fuel processing plant will receive the same amount of electricity from the grid as the solar park generates,<\/span><a href=\"https:\/\/azerenerji.gov.az\/index.php\/newsdetail\/1874?language=en\"><span style=\"font-weight: 400;\"> according<\/span><\/a><span style=\"font-weight: 400;\"> to Azernenerji, the country\u2019s grid operator.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The process will also <\/span><a href=\"https:\/\/www.bp.com\/en_az\/azerbaijan\/home\/news\/interviews\/baku-energy-forum-june-2023-speech-by-bps-regional-president-Azerbaijan-Georgia-Turkiye.html\"><span style=\"font-weight: 400;\">free up<\/span><\/a><span style=\"font-weight: 400;\"> \u201cmore gas to export to world markets\u201d, BP says.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">BP\u2019s project is being developed in partnership with SOCAR, Azerbaijan\u2019s state-owned oil and gas giant. After<\/span><a href=\"https:\/\/www.climatechangenews.com\/2024\/01\/25\/cop29-host-azerbaijan-launches-green-energy-unit-to-sceptical-response\/\"><span style=\"font-weight: 400;\"> setting up<\/span><\/a><span style=\"font-weight: 400;\"> a \u201cgreen energy\u201d unit last year, SOCAR says it is working with international companies, like BP, \u201cin order to get the know-how\u201d and \u201clearn in the process\u201d with the goal of transforming into a \u201ccomprehensive energy company\u201d.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cSooner or later, hydrocarbons will slowly die out &#8211; not right away,\u201d Teymur Guliyev, deputy vice president for the energy transition at SOCAR, told reporters including Climate Home. \u201cBut we have to start our transformation process when we still have plenty of time to plan accordingly, go through trial and error.\u201d\u00a0<\/span><\/p>\n<p>The COP29 spokesperson said Azerbaijan &#8220;is making significant progress&#8221; towards reducing its greenhouse gas emissions. Currently, Azerbaijan has a goal to reduce emissions 40% by 2050 as outlined in its national climate plan (NDC). It has promised to submit a new NDC that is aligned with limiting global warming to 1.5C, which is due by early 2025.<\/p>\n<h3><b>How to move it<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">While the current priority for Azerbaijan\u2019s renewables push appears to be maximising its gas exports, the government is also wrangling over how to sell its clean energy to Europe, when gas demand falls.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">COP29\u2019s Soltanov told Climate Home and other international journalists that he is \u201cvery optimistic\u201d about Azerbaijan\u2019s green transition. \u201cAzerbaijan has been at the forefront of the oil revolution, it has been at the forefront of the gas revolution, and it has all the conditions to be at the forefront of the clean energy revolution as well,\u201d he added.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But the transportation of green electricity remains an obstacle.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The main option being explored is laying an electric cable under the Black Sea, stretching over 1,155 kilometres between Georgia and Romania. Originally the project, under discussion for several years, had the stated intention of linking Georgia to the European transmission network and boosting its energy security.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But it was recently revamped as a possible route to carry Azerbaijan\u2019s clean energy to the European market. In December 2022, the leaders of Azerbaijan, Georgia, Romania and Hungary formed a partnership to push the project forward, <\/span><a href=\"https:\/\/neighbourhood-enlargement.ec.europa.eu\/document\/download\/300f989b-3941-465e-83fc-da77b0021172_en?filename=4.%20Black%20Sea%20Electricity.pdf&amp;prefLang=lv\"><span style=\"font-weight: 400;\">indicating<\/span><\/a><span style=\"font-weight: 400;\"> it could be completed by 2029 at a cost of \u20ac2.3bn ($2.5bn). A two-year long feasibility study is currently in its final stage, <\/span><a href=\"https:\/\/president.az\/en\/articles\/view\/65580\"><span style=\"font-weight: 400;\">according<\/span><\/a><span style=\"font-weight: 400;\"> to President Aliyev.\u00a0<\/span><\/p>\n<div id=\"attachment_51126\" style=\"width: 810px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.climatechangenews.com\/2024\/05\/17\/azerbaijan-pursues-clean-energy-to-export-more-god-given-gas-to-europe\/romania-georgia-hungary-and-azerbaijan-sign-a-memorandum-in-bucharest-on-the-establishment-of-a-power-line-that-will-bring-electricity-from-azerbaijan\/\" rel=\"attachment wp-att-51126\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-51126\" class=\"size-full wp-image-51126\" src=\"https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17114937\/2022-12-17T105549Z_408601396_RC2M7Y95INHP_RTRMADP_3_ROMANIA-ENERGY-AZERBAIJAN.jpg\" alt=\"\" width=\"800\" height=\"470\" srcset=\"https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17114937\/2022-12-17T105549Z_408601396_RC2M7Y95INHP_RTRMADP_3_ROMANIA-ENERGY-AZERBAIJAN.jpg 800w, https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17114937\/2022-12-17T105549Z_408601396_RC2M7Y95INHP_RTRMADP_3_ROMANIA-ENERGY-AZERBAIJAN-286x168.jpg 286w, https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17114937\/2022-12-17T105549Z_408601396_RC2M7Y95INHP_RTRMADP_3_ROMANIA-ENERGY-AZERBAIJAN-574x337.jpg 574w, https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17114937\/2022-12-17T105549Z_408601396_RC2M7Y95INHP_RTRMADP_3_ROMANIA-ENERGY-AZERBAIJAN-768x451.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><p id=\"caption-attachment-51126\" class=\"wp-caption-text\">The leaders of Azerbaijan, Romania, Hungary and Georgia, and the European Commission President, at the signing of a green energy partnership in December 2022. (Photo: Inquam Photos\/Octav Ganea via Reuters)<\/p><\/div>\n<p><span style=\"font-weight: 400;\">Implementing the project could be challenging given the fragile geopolitical situation in the region. The cable would run just south of the Crimean Peninsula, under Russian control, and near a theatre of war in Ukraine with the strong presence of military vessels.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For Climate Analytics\u2019 Bill Hare, \u201cit\u2019s a tricky location to attract investment and get built at the moment, but it would provide a lot of benefits in the long-term\u201d.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are also questions over whether Azerbaijan\u2019s current plans to export green energy via the Black Sea cable will yield a high-enough return to compensate for selling less fossil fuel.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cElectricity trade is a stable source of revenue, but it is also capital-intensive and not very high margin,\u201d explained E3G\u2019s Pastukhova. \u201cIt will not replace the same amount of export revenue that gas and oil have been contributing.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWhat Azerbaijan is doing right now [on renewables] is not enough and quite alarming because this country is so dependent on oil and gas revenue,\u201d she said.<\/span><\/p>\n<p><em>(Reporting by Matteo Civillini in Azerbaijan; editing by Megan Rowling and Joe Lo)<\/em><\/p>\n<p><em>Matteo Civillini visited Azerbaijan as part of an \u201cenergy media tour\u201d organised and sponsored by the COP29 Presidency.<\/em><\/p>\n<p><em>The article was updated on 17 May to include comments from a COP29 spokesperson received after publication.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"Baku rolls out its first large-scale renewables, but a rise in clean energy does not mean leaving fossil fuels in the ground ","protected":false},"author":98,"featured_media":51115,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5130,6,4562,598,439],"tags":[4077,828,80],"coauthors":[4974],"class_list":["post-51113","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cop29","category-energy","category-european-commission","category-fossil-fuels","category-renewables","tag-azerbaijan","tag-clean-energy","tag-oil-and-gas","type-analysis"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Azerbaijan pursues clean energy to export more gas to Europe<\/title>\n<meta name=\"description\" content=\"Baku, Azerbaijan is rolling out its first large-scale renewables, but a rise in clean energy is not leaving oil and gas in the ground\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.climatechangenews.com\/2024\/05\/17\/azerbaijan-pursues-clean-energy-to-export-more-god-given-gas-to-europe\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Azerbaijan pursues clean energy to export more gas to Europe\" \/>\n<meta property=\"og:description\" content=\"Baku, Azerbaijan is rolling out its first large-scale renewables, but a rise in clean energy is not leaving oil and gas in the ground\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.climatechangenews.com\/2024\/05\/17\/azerbaijan-pursues-clean-energy-to-export-more-god-given-gas-to-europe\/\" \/>\n<meta property=\"og:site_name\" content=\"Climate Home News\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ClimateHomeNews\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-17T13:00:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-21T09:49:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cdn.climatechangenews.com\/files\/2024\/05\/17110048\/Garadag-solar-power-plant1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Matteo Civillini\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ClimateHome\" \/>\n<meta name=\"twitter:site\" content=\"@ClimateHome\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Matteo Civillini\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.climatechangenews.com\/2024\/05\/17\/azerbaijan-pursues-clean-energy-to-export-more-god-given-gas-to-europe\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.climatechangenews.com\/2024\/05\/17\/azerbaijan-pursues-clean-energy-to-export-more-god-given-gas-to-europe\/\"},\"author\":{\"name\":\"Matteo Civillini\",\"@id\":\"https:\/\/www.climatechangenews.com\/#\/schema\/person\/3328fab46105a5bcd4dce75566a63c3b\"},\"headline\":\"Azerbaijan pursues clean energy to export more &#8216;god-given&#8217; 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