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“Hydrogen future of Kazakhstan: Expert opinion”

“Hydrogen future of Kazakhstan: Expert opinion”

Dr. Venera N. Anderson

Strategy Advisor and Author | Sustainability & Climate

Member of the Harvard Business Review Advisory Council

Bio:

Following her tenure on Wall Street at Salomon Smith Barney, Bank of America, Goldman Sachs, and Credit Suisse, Dr. Venera N. Anderson is now an independent global strategy advisor and published author on sustainability and climate issues. She creates and implements innovative solutions that address the world’s most pressing problems, such as climate change, economic development, and humanitarian challenges. Dr. Anderson primarily focuses on international projects in clean energy/tech sectors and proprietary analytical research. 

Dr. Anderson is a member of the Harvard Business Review Advisory Council and an International Expert in “Women in Green Hydrogen.” She is a co-author of the “Touching Hydrogen Future” book (2023, 2nd ed.), co-author of 5 books, author of “The Fight Against Poverty in the BRICS Countries: Historical, Socio-Economic, and Political Aspects” (2020), and 25 articles on poverty in transitional economies (2003-2020).

Dr. Anderson is a LinkedIn’s “Top Renewable Energy Voice,” an illuminem’s #1

Energy (2023); #6 Hydrogen and #9 Energy Transition (2022) Most-Read Thought Leader of the Year; and the Top 100 Global Female Sustainability Leader. She is a Rotary International’s Paul Harris Fellow, a recipient of the USA President’s Volunteer Service Award for outstanding dedication to the mission of the American Red Cross, and a Global Ambassador for Savvitas, an influential and innovative global think-tank in the United Kingdom, which seeks to boost women’s economic power.

Interview Questions:

Why did you choose Kazakhstan for your chapter, “Kazakhstan, 2049: Hydrogen Silk Roads and Hubs,” from the book Touching Hydrogen Future?

More than three years ago, during the COVID-19 pandemic, I was recommended to read the first edition of the book Touching Hydrogen Future. The book presented a series of short stories about various countries where hydrogen is the norm. The main goal of the publication was to inspire and educate the future generation, encouraging them to welcome and actively contribute to the development of hydrogen technology.

Instead of tracking COVID cases, I immensely enjoyed reading about hydrogen visions of different countries. However, Kazakhstan was not included in the book. Later, the book editors, Erik Rakhoe and Rosa Puentes Fernandez invited me to the authors’ team for the book’s 2nd edition and offered to pick a country. As a Eurasian with many Kazakhstan-born friends, I was very passionate about writing about Kazakhstan, the “Heart of Eurasia.” 

My book chapter, “Kazakhstan 2049: Hydrogen Silk Roads and Hubs,” is a futuristic story based on current research, including my own about the US coastal green hydrogen hubs and my childhood camel trekking memory. This memory extends into a future caravan travel experience throughout coastal green hydrogen hubs in Kazakhstan in September 2049. Since being published in July 2023, as intended, the book has sparked many conversations about the pros and cons of this technology. It is currently being sold globally on Amazon, downloaded digitally for free in more than 130 countries, and donated as a gift to libraries of major universities, companies, and the Embassy of Kazakhstan in the United Kingdom. 

Lastly, the Illuminem website, considered “Bloomberg of Sustainability,” with more than 350,000 readers worldwide, also published my chapter as an article. I was surprised and honored to discover that my futuristic story about Kazakhstan became Illuminem’s “#1 -Most-Read Article on Energy” worldwide in 2023.  

Lastly, two years ago, when I was suddenly offered an opportunity to write a futuristic story about Kazakhstan’s hydrogen future, I could have never imagined that I would be invited to Almaty in the autumn of 2024 to share my subsequent research about the country in front of the Kazakhstani and global leaders in the energy industry at the KIOGE 2024, 29th International Kazakhstan Oil & Gas Conference & Exhibition, one of the most significant and long-standing events in Kazakhstan’s energy sector.

How would you assess the current state of hydrogen technology development in Kazakhstan?

As Central Asia’s energy transition pioneer, Kazakhstan is well-positioned to become a global player in the clean hydrogen industry. The country has scored multiple energy transition firsts in this region. For example, Kazakhstan was the first to set renewable energy targets, launch a national emissions trading system, develop utility-scale solar and wind projects, present a support mechanism for renewables, and set a carbon neutrality target by 2060. In 2012, the government also announced the “Kazakhstan 2050” national strategy, aspiring to generate up to 50% of all energy consumed from alternative sources. Recently, the country realized the importance of clean hydrogen in meeting its national decarbonization goals. Major milestones were accomplished in 2024. First, in April 2024, Kazakhstan released the long-awaited draft of the national hydrogen roadmap until 2040, even though it got a mixed review from Central Asian-focused hydrogen experts. Second, in July 2024, Kazakhstan published its first hydrogen standards based on international ISO standards. The country officially approved three main standards for hydrogen fuel quality, fuel cell technologies, and safety requirements for hydrogen systems.

BP Outlook 2024 notes that while blue hydrogen starts with a cost advantage relative to green hydrogen, by 2050, around 60% of clean hydrogen will take the form of green hydrogen in its Net-Zero scenario. While clean hydrogen is not a panacea for energy transition, it can enable and complement other decarbonization pathways, namely, electrification, energy efficiency measures, and biomass-based fuels.

Therefore, my recent research study, “The Green Hydrogen-Water-Food-Nexus: A Sustainability Analysis for Kazakhstan,” published on illuminem and presented at KIOGE 2024, specifically focused on the green hydrogen-water-food-nexus challenges and opportunities in Kazakhstan to propose novel policies for future sustainable green hydrogen hubs development in the country.

KazMunaiGas (KMG) is actively implementing a low-carbon development program in which hydrogen plays a key role. Are you familiar with KMG Engineering’s activities in the hydrogen sector?

In December 2022, before starting to write my futuristic story about Kazakhstan as a chapter in the “Touching Hydrogen Future” book, I extensively researched the country’s energy transition/ hydrogen-related efforts and professionals. I did not want to write a fairy tale, so I wanted to build on my own sustainability research, published on illuminem in October, 2022, “Geography Matters: Coastal Green Hydrogen Hub as a Key to Building a Hydrogen Economy” (later translated into Arabic and published by the IDSC, Egyptian Cabinet Information and Decision Support Center) and focus on the current realities in December, 2022 to envision a plausible version of the future in Kazakhstan in September, 2049.

During my research, I learned that President Tokayev assigned its government to prioritize the development of hydrogen technology and create the Competence Center for Hydrogen Energy at KazMunayGaz (KMG) National Company. In June 2022, KMG signed the memorandum of understanding (MoU) with Chevron to explore potential lower carbon business opportunities in Kazakhstan. In the same month, the Green Hydrogen Alliance was established, cooperating with companies from Kazakhstan, Italy, Spain, and Germany. In November 2022, at the 27th United Nations Framework Convention on Climate Change, the European Union signed a MoU with Kazakhstan to support the development of green hydrogen and battery value chains and increase both economies’ green and digital transformation.

I was especially impressed by KMG Engineering’s leadership efforts in exploring the development and promotion of clean hydrogen technology domestically and internationally. Throughout my research, I discovered Dr. Saule Zholdayakova, Head/Acting Director of the Department of Alternative Energy, and her team. KMG Engineering’s research materials and her doctoral dissertation, were valuable additions to my own academic research in helping envision the possible future in Kazakhstan in 2049. Last year, through LinkedIn, “Women in Green Hydrogen,” and “GWNET Women’s Network in Energy Transition” network connections, Dr. Zholdayakova and I met virtually and continue staying in touch. Mrs. Khorlan Ayezbekova, KMG’s Head of Strategy, also contacted me, and we finally met in person in Almaty at the KIOGE 2024.   

By the way, prior to the official global book launch of “Touching Hydrogen Future” by the World Hydrogen Leaders at the World Hydrogen Week, Rotterdam, Netherlands in October 2023, Dr. Zholdayakova shared with me additional materials from KMG Engineering, to prepare me for the global webinar describing the subsequent hydrogen developments in Kazakhstan post the digital book release in July 2023. Lastly, I also used the KMG Engineering presentation by Ms. Botakoz Suleimenova from the “UNECE Workshop on Hydrogen-Water Nexus in Central Asia” (June 2024) as a research source for my recent research paper, “The Green Hydrogen-Water-Food-Nexus: A Sustainability Analysis for Kazakhstan,” which was published on illuminem in September 2024.

What do you believe are the main challenges Kazakhstan faces in becoming a leader in the hydrogen economy? How can Kazakhstan overcome these challenges, and what steps should be taken to ensure a successful transition to green hydrogen production?

I would like to start the answer to this question with the foreword to my chapter in the “Touching Hydrogen Future” book:

“By 2049, Kazakhstan will have unlocked its hydrogen potential, connecting it to the global hydrogen economy. However, the country’s transformation from a major fossil fuels exporter to an Eurasian green hydrogen leader has yet to continue. As a captain atop a “desert ship,” you will enjoy being a part of a future camel caravan experience through the hydrogen silk roads and hubs, witnessing how hydrogen transforms Kazakhstan beyond one’s imagination.”

In other words, since the Kazakhstani dominant governance framework is based on the fossil fuels energy system, its energy transition will be a systemic, non-linear, and structural change over the decades. I recommend reading my new research study, “The Green Hydrogen-Water-Food-Nexus: A Sustainability Analysis for Kazakhstan,” for my detailed answer to your question.

The study analyzes Kazakhstani energy, water, and food situations and presents innovative policies for developing its future sustainable green hydrogen hubs in the context of the global energy transition. The sustainability analysis in this research study builds upon selected international environmental law and policy’s key principles and agreements relevant to Kazakhstan. Furthermore, I used my proprietary qualitative concepts for its methodology: the “quasi-revolutionary transition” governance model for developing US coastal green H2 hubs and “nexus-integrated policies” for Japan. After reviewing transboundary water issues and internal wastewater opportunities, I proposed novel policies for developing future sustainable green hydrogen hubs in Kazakhstan.

What recommendations or wishes do you have for KMG Engineering’s hydrogen team as we expand our hydrogen projects?

KMG Engineering’s hydrogen team is already successfully enhancing its research, scaling production, and engaging effectively with international partners. I may again suggest reading the recommendations in my research study “The Green Hydrogen-Water-Food-Nexus: A Sustainability Analysis for Kazakhstan” for the following reasons.

First, during the “UNECE Workshop on Hydrogen-Water Nexus in Central Asia” (12, June 2024), Ms. Botakoz Suleimenova, Researcher, Hydrogen Technologies Research Laboratory, KMG Engineering, delivered a presentation with an overview of hydrogen deployment in Kazakhstan, barriers for hydrogen industry development in the country, and particularities of green hydrogen-water nexus. In contrast, my research study proposes that the challenges and opportunities of green hydrogen production in Kazakhstan should be viewed through a wider framework, such as the green hydrogen-water-food nexus. 

Second, one of the key takeaways from the discussion between the hydrogen experts in Central Asia at that workshop included the following assertion that “Renewable energy sources and use of desalinated water from the Caspian Sea are crucial for producing low-carbon hydrogen. These resources must be effectively integrated into hydrogen production strategies.” My research study analyzed the transboundary water issues, such as uncertainty of transboundary water supply and brine marine pollution through desalination of the Caspian Sea. In regards to marine pollution, through the additional analysis using international environmental law and policy frameworks, the research study proved that desalination aspirations related to Kazakhstan’s green hydrogen production contradicted its biodiversity plans and promises. In so doing, the study demonstrated that desalination needed to be only a potential bridge solution for water production in the Kazakhstani green hydrogen -water-food nexus, even if new technologies might make desalination more efficient. Lastly, the research study described how internal wastewater opportunities might positively influence the green hydrogen-water-food nexus in Kazakhstan. Therefore, I recommend that KMG Engineering’s hydrogen team explore these issues further with international partners.

You are a strong advocate for gender equality, especially, in the energy transition sector through your involvement in the Harvard Alumni for Climate and the Environment; GWNET (Global Women’s Network for the Energy Transition); Women in Cleantech and Sustainability, Environmental Sustainability Rotary International’s Rotary Action Group, “Women in Green Hydrogen,” and “Tech up for Women.” You have also just been named a Global Ambassador for Savvitas, an influential and innovative global think-tank in the United Kingdom, striving to boost women’s economic power.

In your view, what is the significance of such networks in amplifying the voices of women in the climate and tech sectors?

The significance of these networks cannot be underestimated during the ongoing energy transition. For instance, “Women in Green Hydrogen,” where I am, along with Dr. Saule Zholdayakova, an International Expert, is a global network of women, working in the green hydrogen sector. The network’s vision is to increase the visibility and amplify women’s voices working in green hydrogen. This network strives to promote diversity in the industry, which thrives on new ideas and innovation. Therefore, the network works hard to encourage the participation of women in conferences, relevant media, and expert talks. In sum, the “Women in Green Hydrogen” network aims to build a community to connect women in green hydrogen, foster knowledge exchange, and create professional opportunities for the members. I especially would like to praise the “Women in Green Hydrogen” Mentoring Program, which is now in its 4th edition, with a record number of 167 mentees from 47 countries.

We understand that you recently attended the KIOGE conference in Almaty, Kazakhstan. What were your impressions of the city, conference, and Kazakhstan as a country, particularly in terms of its commitment to sustainable energy and hydrogen technologies?

I fell in love with Almaty, Kazakhstan. It was my first time in this beautiful city in the foothills of the Trans-Ili Alatau, full of rich history, colorful sights, and hospitable people. I cannot wait to get back!

Also, it was a great honor to participate as a keynote speaker at the opening plenary session “International Partnership in Energy Project Implementation,” along with the Minister of Energy of the Republic of Kazakhstan, Mr. Satkaliev; Ministry of Energy & Infrastructure from the United Arab Emirates, H.E. Suhail Mohamed Almazroueh; Chairman of the Management Board of KazMunayGas, Mr. Khassenov; Chairman of the Board of the QazaqGas, Mr. Zharkeshov; Senior Vice President and Country Chair of Shell in Kazakhstan, Mr. Al-Janabi; Chairman and Managing Director of Eni in Kazakhstan, Mr. Seger Hoytink; and Partner of Boston Consulting Group (BCG), Dr. van Grondelle.

I was energized by the discussions about Kazakhstan’s commitment to sustainable energy and hydrogen technologies during the conference, especially my unexpected last-minute moderation of the panel “De-Methanization and De-Carbonization Technology Advances,” organized by the British-Kazakh Society, at the request of its leaders Nicolas Pomeroy and David Skeels.

 Carbon Tracker states that “The upcoming 10-15 years will be crucial for laying the foundation of the new economy [in Kazakhstan]. Failure to do so will result in economic stranding as legacy revenue streams and old economy jobs dry up without the offset from the new (clean) revenue streams and labor opportunities.” In other words, the direction of change is inevitable, but Kazakhstan’s speed to act is up to it.

Considering green hydrogen-water-food nexus challenges and opportunities in its green hydrogen development might reinforce Kazakhstan’s position as an energy transition pioneer and enhance its leadership status in transboundary environmental cooperation with the neighboring states to avoid geopolitical tensions in Central Asia.

Kazakhstan – Forward!  Казахстан Алга!

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