Germany-based renewable energy developer Svevind Energy Group is planning to invest $50 billion into a 20-gigawatt green hydrogen project in Kazakhstan, Kallanish reports.

The so-called Hyrasia One project would run an electrolyser park fed by both wind and solar photovoltaic energy, producing 2 million tonnes/year of green hydrogen at full capacity. First production is slated for early 2030, before it gears towards peak production in 2032.

A long-term framework agreement signed with the Kazakh government on Thursday paves the way for definitions on land access, taxes, permit processes, and no restrictions on trade and capital movements. Svevind says the preliminary deal shows the full commitment from the Kazakhstan government to enable the project to move forward. A final investment decision is expected in 2026.

“This investment agreement signed today takes the project into the next, decisive phase,” says Svevind’s ceo Wolfgang Kropp. “Kazakhstan is the ideal hosting country for the project as it has excellent year-round wind conditions and solar radiation. The country has lower costs of green hydrogen production, which makes it very competitive in the global market.”

The Dresden-based firm has a portfolio of renewables projects across Sweden, Germany, and Kazakhstan. This huge green hydrogen project in Central Asia is expected to demand 40 GW of renewable wind and solar generation. 

Also on Thursday, European Council’s President Charles Michael and Kazakh President Kassym-Jomart Tokayev agreed in Astana on an MOU for a strategic partnership between the European Union and Kazakhstan for sustainable raw materials, batteries, and renewable hydrogen value chains. The MOU will be signed soon, and should facilitate greater cooperation around critical materials, especially rare earths, the Council says.

Other bilateral discussions include the potential relocation of European manufacturing companies, of which products aren’t under sanctions, to Kazakhstan. The creation of a new route connecting Europe to Central Asia is also a topic on their agenda, given the current geopolitical situation.

“The presidents stressed the importance of tapping into existing potential in the areas of green economy, energy efficiency, digitalisation, and connectivity between Kazakhstan and the EU,” the parties said in a joint statement, while noting the EU is the biggest trader and investor in Kazakhstan.

The EU is targeting the import of 10m t/y of green hydrogen in 2030.