Kazakhstan considering nuclear power, renewables as part of decarbonization plans

Kazakh President Kassym-Jomart Tokayev said Sept. 3 the country needed to develop a nuclear power plant as part of efforts to reduce the carbon intensity of its energy sector.

"It is important to take into account the urgent needs of the state, citizens and business. I think that the time has come to specifically consider this issue, as Kazakhstan needs a nuclear power plant," Tokayev said in an address to the Eastern Economic Forum in Vladivostok.

Kazakhstan is targeting a big increase in the role of renewables in its energy balance, as renewables currently account for only 3%. It recently raised targets to increase that to 15% by 2030 from 10% by 2030.

Tokayev said previously the government plans to audit all power plants in Kazakhstan, most of which are 40 years older or more, to establish which facilities should be retired, repaired or modernized.

Kazakhstan is also targeting cooperation with international investors to develop its energy sector, and is in negotiation with investors from the UAE, France and other European countries on potential projects.

The government has prepared a draft environmental code, which Tokayev said should be adopted by the end of 2021, according to the president's official website.

Kazakh officials are concerned about the potentially significant impact of the EU carbon border tax on Kazakh exports.

In May, Tokayev said Kazakhstan's contribution to decarbonization of the global economy would be one of the criteria determining whether it may be admitted to the Organization for Economic Cooperation and Development.

CCUS agreement

Separately on Sept. 3, Kazakhstan's Kazmunaigas said it has signed an agreement with Shell on cooperation on carbon capture, utilization and storage.

The memorandum covers joint study of potential opportunities to implement a CCUS pilot project.

"The memorandum aims to strengthen the long-term mutually beneficial cooperation of the parties and to support Kazakhstan in its efforts to fulfill the commitments on reduction of greenhouse gas emissions undertaken by the Republic as part of the Paris Agreement," Kazmunaigas said.

"We are delighted that the memorandum signed with Kazmunaigas makes it possible to further contribute to the development of the country's oil and gas sector and support Kazakhstan's efforts in its energy transition, an important task both for our companies and the country," Shell Kazakhstan head German Burmeister said in the Kazmunaigas statement.

Kazmunaigas is developing a low-carbon development program up to 2031, including specific targets, and examining prospects for implementing decarbonization technology at production projects.

Shell's existing involvement in the Kazakhstan energy sector includes a 16.8% interest in the offshore Kashagan field.