Page 36 - Caucasus Outlook 2024

understanding (MoU) on expanding their energy cooperation. Next month, in July 2023, Azerbaijan signed a MoU with the European Commission, pledging to double its gas exports to Europe to 20 bcm per year by 2027. This is a significant increase from the current 12 bcm exported in 2023 and represents a major step in Europe's efforts to diversify its energy sources away from Russia.
In September 2023, Hungary secured a long-term natural gas supply agreement with Azerbaijan. In December 2023, bp Azerbaijan announced the discovery of a new gas field in the Shah Deniz area of the Caspian Sea.
In October 2023, Azerbaijan opened its largest solar power plant, the Hirkan Solar Power Plant, with a capacity of 150 megawatts (MW). This project marks a significant step towards the country's goal of diversifying its energy mix and increasing the use of renewable sources. Overall in the green energy realm, the potential of commercially viable and technically practicable renewable energy sources is projected to be 27,000 MW, comprising 3,000 MW of wind energy, 23,000 MW of solar energy, 380 MW of biofuel potential, and 520 MW of mountain rivers.
In November 2023, Azerbaijan and the United Arab Emirates (UAE) launched a joint project to develop a green hydrogen production facility in Azerbaijan. This project aims to produce up to 500,000 tonnes of green hydrogen annually,
3.3.5 Construction
In January-October 2023, construction materials worth AZN933.6mn ($549.2mn) were produced, which is 29.7% more than in 10 months of 2022 according to the State Statistics Committee. According to statistics, the volume of cement production amounted to 3.075mn tonnes (an increase of 3%), prefabricated concrete structures 24,600 cubic metres (a decrease of 39.7%), and asphalt - 68,700 tonnes (a decrease of 52 %).
In addition, the production of building bricks amounted to 486,500 cubic metres (a decline of 2.1%), and building glass - 7.463mn m2 (an increase of 14%).
Cement clinker produced 3.135mn tonnes (an increase of 9.5%), construction gypsum 69,600 tonnes (an increase of 2 times), ready-mix concrete 3.187mn tonnes (an increase of 15.4%), building lime 40,900 tonnes (an increase of 12.7%).
Earlier, in 2022, Azerbaijan produced construction materials worth AZN1.085bn ($638.8mn), which is 12.6% more than in 2021.
In October 2023, the price of construction materials in Azerbaijan decreased by 12.4% y/y, and by 3.9% compared to the beginning of the
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