€1.3 Million Investment Secured for Green Hydrogen Development in Georgia

In a significant move towards fostering green energy consumption, a €1.3 million investment was secured during the German-Georgian government negotiations week.

An agreement to this effect was signed between Giorgi Chikovani, the General Director of the Oil and Gas Corporation, and Bodo Schmüling, the Director of the Energy Sector at the German Development Bank (KfW). The signing took place in Berlin on June 19, with Romeo Mikoutadze, the First Deputy Minister of Economy and Sustainable Development of Georgia, in attendance.

As outlined in the agreement, the funds are intended to catalyze entrepreneurial activities related to the development of green hydrogen consumption. Specifically, the allocated investment will support preparatory measures, such as necessary technical-economic justifications, design work, implementation of environmental impact reports, and relevant legislative initiatives.

The German federal government, in collaboration with KfW and the Ministry of Economy and Sustainable Development, intends to stimulate the growth of the green hydrogen market in Georgia. In line with this objective, a memorandum was recently signed by the Ministry of Economy and Sustainable Development of Georgia, the Georgian Oil and Gas Corporation, the Batumi Municipality Hall, and KfW. The memorandum underlines the joint commitment of the parties to develop both a green hydrogen pilot plant and its full supply-demand chain.

This €1.3 million agreement marks the initial phase of the project, representing the first steps towards advancing green hydrogen development in Georgia. As part of the project's early applications, Batumi's municipal transport system is being considered for the utilization of hydrogen, one of the cleanest energy products. The preparatory phase of this project is expected to span approximately one year.