New draft hydrogen strategy | Kazakhstan targets 10GW of electrolysers by 2040 but promises 'technological neutrality'

Kazakhstan aims to have 10GW of electrolysis capacity and 10GW of new renewable energy capacity by 2040, according to its new draft hydrogen strategy. This strategy, unveiled on April 25, 2024, outlines the country's plans for hydrogen production, emphasizing a technology-neutral approach with no favoritism towards fossil fuels.

The government hopes to attract $11.2 billion in investments to the hydrogen sector by 2040. One of its goals is to establish a pilot project for blue hydrogen, utilizing the country's abundant fossil gas reserves with carbon capture and storage. Although the strategy is still in draft form, Kazakh Prime Minister Oljas Bektenov has recommended it for approval.

The strategy envisions Kazakhstan becoming a hydrogen exporter while also promoting domestic use in industries, heavy-duty transport, and railways. It plans to blend hydrogen with natural gas, leveraging existing gas infrastructure for distribution.

Additionally, the strategy prioritizes research, development, and international collaboration, particularly in nuclear hydrogen. Kazakhstan, a major uranium exporter, is exploring novel nuclear reactors to extract hydrogen from hydrogen sulfides found in associated gas.

However, the strategy lacks specifics on subsidies, the use of green hydrogen, and production locations. Notably, it sets a modest electrolysis target compared to a previous ambitious project, Hyrasia One, initiated by Swedish developer Svevind. Despite Hyrasia's absence in the new document, it remains a significant project with substantial investment and renewable energy capacity.

Independent experts raise concerns about the adequacy of renewable energy capacity to support electrolysis targets, highlighting challenges such as water scarcity. The strategy acknowledges these challenges and emphasizes the need for a well-developed plan to address them effectively.