Azerbaijan's state-owned Socar has said it will establish a unit, Socar Green, to focus on driving and growing the company's renewable energy portfolio.
The decision was taken today during a meeting of the company's supervisory board, Socar said, in line with a directive issued by Azerbaijan President Ilham Aliyev.
No details have been issued on the exact remit of the new entity, with Socar only saying it will be responsible for developing renewable energy sources in the country and for achieving its decarbonisation goals.
Socar already has several investments in renewable and alternative energy, the most recent of which came in January when it signed an agreement with Abu Dhabi state-owned renewable energy company Masdar to develop renewable energy projects with a combined capacity of 4GW in the central Asian state. Socar followed this with a preliminary agreement with Saudi Arabia's Acwa Power in February, to work together on renewable energy including green hydrogen.
Oversight of Socar's stakes in these projects are likely to be transferred to Socar Green.
The Azeri energy ministry has signed a host of agreements with renewable energy companies in recent years, including with Masdar and Acwa Power, for a host of wind power and solar PV plants, to help the country deliver its goal of producing 30pc of its power needs from renewable sources by 2030. The move probably comes as part of Azerbaijan's and Socar's push to bolster their green credentials ahead of the country's hosting of the Cop 29 UN climate summit in November 2024.
