South Korea’s YPP to invest up to $3.1B in green hydrogen production in Kazakhstan

July 17, 2025, by Aida Čučuk

South Korea’s engineering company YPP and Kazakhstan’s national investment company Kazakh Invest have signed a framework agreement on cooperation for the implementation of a green hydrogen production project in Kazakhstan.

It is understood that the parties intend to implement a major investment project – the Green Energy Complex – aimed at establishing a full-cycle production of green hydrogen and ammonia using renewable energy sources (RES). Reportedly, the total investment may reach up to $3.1 billion, depending on the project model and location conditions.

According to Kazakh Invest, the initiative is set to provide for the construction of wind and solar power plants with a total capacity of up to 2 GW, as well as the installation of electrolysis and ammonia production units. Production capacities are expected to reach up to 75,000 tons of green hydrogen, part of which would then be converted into 310,000 tons of green ammonia annually. As informed, part of the output will be used domestically, with the majority intended for export.

The project is also said to involve the development of local infrastructure, including energy storage systems, water supply, logistics, and potential applications of hydrogen in energy – particularly through modernization of CHP plants in the Almaty region.

Azamat Kozhanov, Deputy Chairman of the Management Board of Kazakh Invest, stressed that the initiative aligns with Kazakhstan’s strategic priorities and plans for developing the hydrogen energy sector, adding: “We see a strong and sustained interest from international companies in implementing green energy and hydrogen projects. Kazakhstan has tremendous potential — up to 1,820 billion kWh per year for wind and 2.5 billion kWh for solar. Dozens of initiatives are already underway, and we believe that partnerships like the one with YPP will turn this potential into tangible production, exports, and new jobs.”

John M. Bek, Chairman of the Board of YPP, stated: “Kazakhstan has unique natural conditions and an investment climate favorable for the development of hydrogen energy. We view the Republic of Kazakhstan as a strategic partner and intend to implement a project that combines Korea’s best technologies with global approaches to sustainable production.”

To note, as per Kazakh Invest, this agreement paves the way for a deeper elaboration of the investment model, conclusion of an investment agreement, and formation of partnerships with relevant organizations, including potential offtakers such as South Korea’s Samsung C&T.