June 12, 2024 - The South Caucasus News - SouthCaucasusNews.com

Uniper is looking forward to discussing the potential increase of gas supply from Azerbaijan, noted Michael Hilmer, VP at Uniper, according to Azerbaijan in Focus, reporting Trend.

“Azerbaijan is an important country for the EU’s energy security and diversification of energy sources. Uniper as a buyer of natural gas from the Shah Deniz II project helps to facilitate the gas supplies from Azerbaijan to Europe. One of the current key issues for Uniper is ensuring the security of supply and diversification of energy flows into its portfolio. Azerbaijan with SOCAR as one of the main players has proven to be a very reliable partner in terms of secure and steady supply. We are looking forward to discussing the potential increase of those gas supplies especially in light of the strategic energy partnership entered mid-2022 by Azerbaijan and the EU Commission consisting of the plan to double the gas export capacity of the Southern Gas Corridor,” he said.

According to Hilmer, decarbonization and energy transition are also Uniper’s shared paths with SOCAR, and the two companies are actively engaged in various initiatives, arranging meetings, workshops, and site visits.

“We are ready to expand our cooperation to achieve our goals in terms of carbon neutrality. Uniper and SOCAR have been working together since 2008. In 2014, SOCAR and Uniper signed a formal cooperation agreement. Overall it covers best practice exchange in the fields of technology, energy business and HR,” the VP pointed out.

Michael Hilmer further noted that the current focus topics of cooperation between Uniper and SOCAR are energy efficiency, energy transition and sustainability, renewables and clean fuels and women in STEM (science, technology, engineering, and mathematics) and leadership.

Moreover, as Uniper VP reported, at the moment, SOCAR-Uniper LLC is finalizing the first project to improve and enhance energy efficiency.

“The main objective of SOCAR-Uniper LLC joint venture is to carry out joint projects around energy efficiency. Currently, the joint venture is finalizing the first project to improve and enhance the efficiency of the Steam and Power Generator Complex located at Azerkimya PU in Sumgayit,” he said.

According to Hilmer, the facility currently provides steam and electricity to the ethylene production unit.

“After adding a new steam turbine and upgrading the existing units, which will result in 52 MW of extra electrical production capacity and a significant increase in energy efficiency. The team is currently putting great effort into commissioning the project,” the VP explained.

In general, as Michael Hilmer pointed out, there are ample opportunities for cooperation between SOCAR and Uniper in the renewable energy field.

“Uniper and SOCAR are both companies, that are developing a portfolio of renewable energy sources in their core markets to work on their goals to reduce carbon emissions. It is impressive to see, how many renewable energy projects are under development in Azerbaijan with a strong view of exporting green electricity to Europe,” he said.

The VP noted that, as SOCAR just announced the signing of a shareholder agreement for joining a 1 GW renewables project in Azerbaijan, Uniper just entered a development partnership for a 600 MW onshore wind project in Poland.

“Uniper is committed to developing 10 GW of onshore wind and solar farms by 2030, focusing on key European markets,” Michael Hilmer pointed out.

He also added that Uniper is currently testing the utilization of a former natural gas storage cavern in northern Germany for storing green hydrogen. “It is planned to develop a total working gas capacity of 250 to 600 GWh by 2030”.

At the same time, green hydrogen has also been a topic of knowledge exchange within the cooperation between Uniper and SOCAR.

“For Uniper, hydrogen is a critical component of its decarbonization and energy transition strategy. Uniper published in August 2023 its new strategy named “Accelerating the Energy Transition – Flexible, Balanced, Bespoke”. Uniper wants to reach carbon neutrality by 2040 by significantly investing in growth and energy transformation,” he said.

According to the VP, the plans include the development of a portfolio of 15-20 GW power production which will be 80 percent green by 2030.

“Furthermore, Uniper is diversifying its gas portfolio to enhance the security of gas supply in Europe. The company’s ambition is for 5-10 percent of its portfolio to consist of green gases by 2030, including green hydrogen and derivatives and biomethane,” Hilmer elaborated.

He explained that this target will be addressed by developing more than 1 GW electrolyzer capacity to produce hydrogen from green electricity supply, as well as developing a portfolio of green hydrogen and derivative products, and biomethane. “These are some steps Uniper is taking, which would limit the detrimental effects of future energy crises”.

“Decarbonization is the dominating topic in current developments and activities of most energy companies. That could be seen here at the forum at various presentations and public announcements. However, the security of supply and diversification are increasingly important topics, as we just experienced during the European energy crisis. One of the main challenges most of the energy markets have in common under is the integration of the existing and new forms of energy. There will be many topics in this regard, where Uniper and SOCAR can learn from each other,” he added.

Meanwhile, VP Hilmer also reminded that as a Bronze Sponsor of the 29th Baku Energy Forum, which took place on June 5-6, Uniper hosted a session themed “Gas dialogue: The role of gas supply during the energy crisis”.

“This event is valuable for building and strengthening relationships with key local stakeholders and the international business community that operates in Azerbaijan and the region. Furthermore, the forum is a great source of information about new developments in the oil and gas sector, as well as in the fields of decarbonization, renewables, and energy transition projects in the country. These are all topics, which are of high relevance for Uniper in delivering its new strategy to accelerate the energy transition,” VP Michael Hilmer concluded.

The post VP Michael Hilmer: Uniper seeks to negotiate extra gas supplies with Azerbaijan appeared first on Azerbaijan In Focus.

It is necessary to focus on specific chokepoints along the Middle Corridor in order to optimize its efficiency, said James Sharp, former ambassador of the UK in Azerbaijan, and board member of the Caspian Policy Center (CPC) James Sharp, according to Azerbaijan in Focus, reporting Trend, citing CPC.

“If you want to speed up the transit time for the Middle Corridor, you focus on those Caspian ports, those chokepoints, looking at both hard connectivity, such as port infrastructure, and soft connectivity, like customs regulations,” he said, addressing the second Caspian Connectivity Conference in London, Trend reports via the CPC.

Emphasizing the linkage between better connectivity and support for economic development, Sharp spoke of how Caspian countries can add value, rather than simply exporting raw materials.

“The approach today isn’t just about the challenges of the Middle Corridor. it’s actually about the opportunities. That’s what we’re really here to talk about. It provides great benefits for the countries themselves to promote and provide regional connectivity to help the countries either connect with each other or to allow them to connect with the outside world,” he added.

The Middle Corridor serves as a vital transportation and trade artery, bridging Asia and Europe through several nations along its path. As an alternative to the established Northern and Southern Corridors, it offers a strategic route for connectivity and commerce.

Originating in China, the route traverses through key Central Asian nations like Kazakhstan, Uzbekistan, and Turkmenistan. Crossing the Caspian Sea, it extends through Azerbaijan, Georgia, and Türkiye before reaching Europe’s doorstep.

By providing a land-based pathway, the Middle Corridor efficiently links the eastern reaches of Asia, notably China, with Europe, circumventing the longer maritime passages. This not only enhances trade efficiency but also strengthens geopolitical ties among the participating countries.

The post James Sharp: It is necessary to focus on specific chokepoints along Middle Corridor appeared first on Azerbaijan In Focus.