Green hydrogen production is expected to commence in Azerbaijan’s Sumgayit Chemical Industrial Park between 2027 and 2028, Kalin Runtev, CEO of the Azerbaijani-Bulgarian joint venture Caspian Lubricants Recycling and head of Bulgaria’s Torec Engineering, told Report.
According to Runtev, if the company’s planned plant begins operations in November–December this year, the next phase will involve supplying the facility with green electricity, followed by the start of green hydrogen production. “The hydrogen will serve both as a fuel and as a raw material for manufacturing Group II base oils — including hydrotreating, hydrocracking, and distillate fractions. This will make our facility unique in the region stretching from the South Caucasus to Pakistan, with the nearest similar plant located some 3,000 kilometers away,” he said.
R&D work for the hydrogen project is set to begin in 2026, with the hydrogen plant and Group II oil production targeted for launch in 2027–2028. Runtev noted that green hydrogen will be produced through water electrolysis using local resources.
The company is currently in talks with European and Chinese electrolyzer suppliers, and the final decision will be made by shareholders once the business plan is approved. Discussions are also ongoing regarding potential participation of international partners, though no formal agreements have been reached yet.
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