State secretary: Germany, Europe interested in green energy from Azerbaijan - INTERVIEW

The global energy transition is dictating new rules of the game, transforming the Caspian region from a fossil fuel supplier into a crucial green energy hub for all of Europe. Today, Azerbaijan stands on the threshold of a large-scale transformation: from utilizing existing pipeline capacity to implementing green hydrogen production technologies that will ensure the energy security of the EU.

In an exclusive interview with Report, Johann Saathoff, Parliamentary State Secretary in the German Federal Ministry for Economic Cooperation and Development (BMZ), discussed how Germany intends to support Baku in realizing its renewable energy potential, the role of the Middle Corridor in ensuring sustainable supply chains, and the importance of digitalization for the economy of the future.

Report presents the interview:

- Mr. Saathoff, speaking at the Governors' Business Session at the 59th Annual Meeting of the Board of Governors of the Asian Development Bank, you emphasized the need to accelerate the energy transition. Given Azerbaijan's potential in the Caspian Sea, how does Germany intend to support the country in its quest to become a major exporter of green energy to Europe?

- For Europe as a whole, and not just Germany, it is crucial to secure access to significant volumes of green resources. These resources are transmitted not only as electrons through wires, but also in molecular form.

In this context, pipeline infrastructure takes on a completely different meaning, as the volume of energy transported through pipelines significantly exceeds the capacity of electrical grids. This is a colossal scale. Connecting regions, particularly between Azerbaijan and other parts of the world and Europe, must be built.

- Is the Federal Ministry for Economic Cooperation and Development considering specific financial mechanisms or technical assistance programs for the implementation of green hydrogen projects in Azerbaijan?

- Absolutely yes. Not only fossil fuel exports are important, but also the recognition of the country's high potential. Azerbaijan has colossal renewable energy resources, as well as experience in industrialization, hydrogen production, and its delivery via pipelines to Europe. These are enormous economic prospects. If I were the decision-maker in Azerbaijan, I would actively develop this particular area.

- Germany consistently supports strengthening regional connectivity. What role, in your opinion, does the Middle Corridor play in ensuring sustainable supply chains between Asia and Europe, and is BMZ prepared to participate in the creation of environmentally friendly logistics infrastructure along this route?

- This is undoubtedly a significant initiative that plays a significant role. One of the determining factors for this route is stability and the existence of unified rules.

We have already established the regulatory framework for this route, and it is a top priority for us.

- How does the Ministry assess the potential of digitalization of transport corridors through Azerbaijan as a tool for increasing the transparency and operational efficiency of regional trade?

- Yes, digitalization is the foundation of the economy for the coming decades. It's imperative to digitalize not only the global space as a whole, but also individual regions. We need to be closely and securely connected. By uniting our societies and countries, we promote shared economic growth so that both sides can benefit from this progress.