Bulgaria plans to invest BGN 2 billion ($1.1 billion) in the production, distribution and use of green hydrogen, Prime Minister Nikolay Denkov said on Friday.

The granted EU funds will be invested in Stara Zagora, Pernik and Kyustendil. These regions are heavily dependent on the mining of coal and the plan is to transform their economies towards renewable sources and innovative technologies, Kallanish notes.

In the coming weeks, the territorial plans, already published by the energy and regional ministries, will be discussed by region, as well as with social partners, so that all interested parties are heard. At the end of September, the plans must be sent to the European Commission for discussion, with the expectation that they will be adopted after negotiations.

According to the Bulgarian government, it is expected that the growth of renewable energy production could lead to a permanent decrease in the prices of green hydrogen. “The goal is the production of energy from new and different energy sources, as well as to attract investors of a new generation - for the production of batteries, new technologies, production of hydrogen, which Bulgaria currently does not have,” Denkov noted.

The territorial plans are long-awaited and will affect the fate of tens of thousands of Bulgarians, he added.

In 2020, Bulgaria announced it has the potential to become a major producer of green hydrogen in the Balkans. Earlier, the country started several energy projects with Greece, including for a pipeline to supply hydrogen in both directions. There is also a joint project to connect Sofia and Thessaloniki with a hydrogen pipeline.

Bulgaria’s state hydrogen strategy relies on green energy and is set to be introduced by 2030. The country estimates it will use around 47 gigawatt-hours of renewable power to produce green hydrogen. The government is yet to disclose its production targets for green hydrogen and its derivatives.