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Kazakhstan, Germany sign energy deals on oil, green hydrogen

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Kazakhstan, Germany sign energy deals on oil, green hydrogen

Kazakhstan and Germany signed a series of energy agreements covering oil, green hydrogen, and coal projects during German Vice Chancellor Robert Habeck's visit to Astana on June 15-16. The deals include a memorandum on hydrogen cooperation and German interest in Kazakh coal mining ventures.

The Agreements

Kazakhstan and Germany signed multiple memorandums of understanding during the visit, including a strategic partnership on raw materials and a hydrogen cooperation deal. German Vice Chancellor Robert Habeck met with Kazakh Prime Minister Alikhan Smailov and Energy Minister Almasadam Satkaliyev. The agreements aim to diversify Germany's energy sources and boost Kazakh exports.

German Interest in Coal

Germany expressed interest in Kazakh coal projects, according to Inbusiness.kz. The move comes as Germany seeks alternative coal suppliers amid reduced Russian gas flows. Kazakhstan holds significant coal reserves, with production reaching 113 million tonnes in 2025.

Hydrogen and Renewables

The hydrogen memorandum focuses on developing green hydrogen production in Kazakhstan, leveraging its renewable energy potential. Germany's Siemens Energy and Kazakh state company QazaqGaz signed a separate agreement on hydrogen infrastructure. Kazakhstan aims to produce 2 million tonnes of green hydrogen annually by 2032.

1.7 Billion Dollar Agreements

The Kazakhstan-Germany business forum, attended by Presidents Kassym-Jomart Tokayev and Frank-Walter Steinmeier, resulted in the signing of documents worth $1.7 billion. The agreements cover rare earth metals and energy cooperation.

What's Next

The parties are to form a joint working group to implement the agreements within three months. It remains unclear how quickly German companies will commit investment, given regulatory hurdles and infrastructure gaps in Kazakhstan.

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Kazakhstan, Germany sign energy deals on oil, green hydrogen