STATUS: aic_
Azerbaijan Business Development Fund contributes to the development of the green economy and the strengthening of environmental sustainability in the country through a range of financial mechanisms. The Fund encourages entrepreneurs to transition towards green business models and, to this end, supports projects in areas such as renewable energy, efficient resource use, and modern waste management.
This approach facilitates the expansion of alternative energy generation, the reduction of carbon emissions, and the integration of innovative technologies into economic activity. Initiatives implemented through the Fund’s investment and concessional lending mechanisms contribute to advancing the country’s green economic transformation on a more sustainable foundation.
Ecostar Green Project
The Ecostar LLC project, focused on waste processing and alternative energy production, is among the innovative green initiatives supported by ABDF. The project is being implemented within the framework of ABDF’s cooperation with SOCAR Downstream and Italy’s Technip Energies.
The project envisages the establishment of a facility capable of processing 36,000 tonnes of plastic waste annually and producing 23,500 tonnes of pyrolysis oil using Alterra pyrolysis technology. Through this process, plastic waste is converted into pyrolysis oil for use as an alternative energy source.
Kalbajar–Lachin Hydroelectric Power Plants
ABDF, in cooperation with Türkiye’s Demirören Yatırım Holding A.Ş., is implementing a project aimed at restoring small hydroelectric power plants in the Kalbajar and Lachin districts. Implemented under a public-private partnership model, the initiative seeks to harness the region’s existing hydropower resources for electricity generation.
At the initial stage of the project, the relaunch of the Malibey Hydroelectric Power Plant is expected to provide electricity to thousands of households. By converting the hydropower potential of rivers into electricity, the project will increase clean energy generation while reducing dependence on conventional fuel sources and making a tangible contribution to lowering carbon emissions.
The total installed capacity of the power plants is 12.9 MW, and the project is expected to create employment opportunities for 60 people in these liberated territories.
Shafag Solar Power Plant
The Shafag project, aimed at harnessing solar energy potential, is one of the key initiatives in which ABDF participates. The project is being implemented through a partnership between ABDF, SOCAR Green, and bp.
The project will enable the energy demand of major industrial facilities, including the Sangachal Terminal, to be met through renewable energy sources, creating tangible opportunities to reduce dependence on fossil fuels. The solar power plant will have a total installed capacity of 240 MW. The large-scale use of solar energy will consequently contribute to reducing carbon emissions and supporting the transition towards a more sustainable energy system.
BYD Project
The BYD project is one of the strategic industrial initiatives supported by ABDF to promote the development of an environmentally sustainable transport system and establish local production capacity for public transport. The project is being implemented in cooperation with BYD Company Ltd., one of the global leaders in electric mobility and battery manufacturing.
The project envisages the establishment of a facility in Azerbaijan for the assembly and production of electric buses. The plant, which will become operational in stages, will have an annual production capacity of 500 electric buses. In line with the project strategy, the target is to localise 40% of the total production cost of the buses by 2030. This will contribute to expanding industrial cooperation, developing local production capabilities, and strengthening technology transfer in the country.
ABDF promotes the development of the green economy not only through major investment projects but also by supporting green initiatives undertaken by entrepreneurs. The Fund’s concessional lending mechanism significantly facilitates access to financial resources for businesses operating in energy efficiency, waste processing, and environmentally sustainable production.
This approach particularly accelerates the transition of small and medium-sized enterprises to green technologies, helping to enhance their competitiveness and establish their operations on a more sustainable basis. To date, the Fund has allocated more than AZN 34 million in concessional loans to 36 green projects implemented by entrepreneurs.
These projects primarily focus on the installation of solar panels, the establishment of charging stations for electric vehicles, and the recycling of plastic, metal, batteries, glass, and other types of waste. For example, Intellekt LLC, a beneficiary of the Fund’s concessional lending programme, is implementing a project to install charging stations for electric vehicles. This initiative contributes to the development of the infrastructure required for electric mobility and supports the wider adoption of electric vehicles in the country.
At the same time, more efficient resource use is promoted by reintegrating waste generated during industrial processes into recycling cycles and introducing alternative energy sources. One such initiative is the biodiesel production project implemented by Azerbaijan Refinery Company CJSC.
Under this project, which has received concessional financing from the Fund, used vehicle tyres are processed through specialised technological methods and converted into secondary raw materials. As a result of this process, carbon residue, biodiesel, and scrap metal are recovered from the tyres.
Projects of this nature supported by ABDF are aimed at developing the country’s green energy ecosystem, promoting the application of innovative technologies, and strengthening environmental sustainability. In the long term, this approach contributes to achieving a balance between economic development and environmental protection.
