Central Asia’s Hydrogen Opportunity: Building the Infrastructure, Talent and Trust to Lead

sofiajones1
May 2
4 min read

Updated: May 13

Kazakhstan and Uzbekistan are emerging as frontrunners in green hydrogen, leveraging abundant renewable resources and strategic geography. With large-scale projects underway and cross-border cooperation expanding, both countries are positioning themselves to help meet rising European demand. However, to realise this potential, they must attract sustained investment, navigate complex policy landscapes, and cultivate the leadership needed to manage high-impact international initiatives.

Scaling Ambition into Action

Uzbekistan and Kazakhstan are moving from ambition to execution. In Uzbekistan, a flagship partnership with ACWA Power and PowerChina is building Central Asia’s first green hydrogen plant, which will be integrated with a new ammonia fertiliser facility. Kazakhstan, meanwhile, has signed a $50 billion agreement with Germany’s Svevind Energy Group to develop one of the world’s largest green hydrogen projects, targeting 2 million tonnes of annual production by 2032.1.

These projects are aligned with Central Asia’s national development frameworks. Kazakhstan’s Concept for the Transition to a Green Economy and Uzbekistan’s Strategy for Transition to a Green Economy 2019–20302 prioritise renewable energy and decarbonisation as pathways to long-term resilience.

However, delivering these ambitions in Central Asia requires more than infrastructure and financing. Project leads must coordinate across jurisdictions, manage cross-border supply chains, and ensure compliance with international sustainability standards, tasks that demand operational focus, diplomatic skill, and policy fluency.

Building a Regional Energy Corridor

The green energy transition in Central Asia is increasingly regional. In 2024, Kazakhstan, Uzbekistan and Azerbaijan formalised a trilateral agreement to integrate elements of their energy systems and jointly develop green hydrogen and ammonia supply chains. This partnership is part of a broader effort to create a Eurasian green energy corridor capable of meeting European demand.

The European Union has committed to importing up to 10 million tonnes of renewable hydrogen annually by 2030, as set out in its Hydrogen Strategy3. Central Asia’s proximity and natural resources offer a competitive advantage, but delivering this vision will require interoperability between national energy systems, harmonised standards, and cohesive export logistics.

Success here depends on experienced operators who can maintain alignment across diverse regulatory frameworks, keep long-term projects on track, and build trust between partners with differing priorities.

Competing in a Crowded Market

European demand creates opportunity, but not without competition. Germany’s revised National Hydrogen Strategy (2023) outlines plans to replace natural gas with hydrogen-ready infrastructure while sourcing imports from countries with scalable green hydrogen capacity. Central Asia is considered a viable partner, but other exporters, from Australia to the Middle East, are also accelerating development.

Success in this space hinges on adaptability. Central Asian governments and developers must navigate shifting certification frameworks for green fuels, keep pace with technology developments (such as solid oxide electrolysis), and respond to EU buyer expectations around traceability and emissions standards. This dynamic environment demands agile leadership, balancing strategic foresight with operational flexibility.

Creating a Supportive Policy and Investment Climate

Policy reform is progressing, albeit unevenly. Kazakhstan’s electricity grid, still shaped by its Soviet legacy, is undergoing incremental upgrades. Both governments are introducing incentives to attract foreign investment, including tax breaks for green technology and reforms to streamline permitting. In 2024, Germany opened a Hydrogen Diplomacy Office in Astana to support bilateral cooperation and promote regulatory alignment4.

Still, systemic risks remain. Investors cite concerns about regulatory fragmentation, the availability of water for electrolysis, and extended project timelines. Addressing these issues requires transparent policy environments, regulatory certainty, and leaders who can broker trust between the public and private sectors.

Developing Talent to Power the Hydrogen Economy

Ultimately, the pace of progress will be determined by people. Both countries face a skills gap in critical technical areas, electrolysis operations, renewable systems engineering, and supply chain logistics. Uzbekistan is developing vocational training aligned with its Green Economy Strategy, while Kazakhstan is building higher education partnerships with European institutions.

Equally important is building institutional capacity, ensuring people across sectors can manage complexity, work collaboratively across cultures, and adapt as policy and market conditions evolve.

Leading Beyond the Megawatts

Central Asia’s green hydrogen drive represents more than an infrastructure upgrade, it’s a strategic opportunity to reposition two economies for global relevance. But success won’t hinge on production targets alone. What will set Kazakhstan and Uzbekistan apart is their ability to cultivate leaders with the mindset and skillset to navigate complexity, shape international partnerships, and deliver long-term value.

This isn’t just a call for more investment. It’s a call for deeper collaboration between institutions, industries, and individuals, where purpose and capability align. Countries that prioritise leadership development alongside policy reform and technical innovation will be best placed to turn green hydrogen from a promise into a competitive advantage. Central Asia now stands at that crossroads.