On November 24, during the presentation of Azerbaijan’s updated Nationally Determined Contribution (NDC 3.0), it was outlined that the country plans to replace gas boilers with electric boilers and high-temperature heat pumps as part of its wider industrial decarbonization program.

The review emphasized that many industrial processes had relied on high-emission fuel combustion and that electrifying equipment and machinery was essential for unlocking full decarbonization potential. It noted that, in the food and beverage and chemicals sectors, gas boilers would be replaced with high-temperature heat pumps and electric boilers to generate steam, while similar applications existed in alumina refining and downstream oil and gas. According to the document, electrification combined with greater renewable energy penetration in the national grid would lead to reduced carbon intensity in fuels consumed by industrial assets. The industry sector was described as a key source of economic growth and employment, contributing up to 25% of Azerbaijan’s non-oil and gas GDP.

The review stated that the industrial sector was traditionally considered difficult to decarbonize due to the high-temperature requirements of industrial processes. The document highlighted the role of industrial parks in facilitating decarbonization by geographically concentrating industrial assets, thereby enabling more efficient waste-heat recycling, electrification, and large-scale CCUS. Current measures included government energy-efficiency support initiatives and construction of a direct-reduced iron plant using low-carbon technology.

According to the NDC, improving energy efficiency remained a key component of emission-reduction efforts, particularly in the oil and gas sector. The review emphasized substantial opportunities for implementing leakage detection and repair (LDAR) technologies in the oil, gas, and alumina industries to reduce fugitive methane emissions. It identified priority measures for 2035, including improving energy efficiency in oil and gas refining, replacing gas boilers with electric boilers and heat pumps, and adopting LDAR technologies in the downstream oil and gas segment. The update also stressed that achieving industrial decarbonization would require considerable capital investment in high-cost technologies. The NDC underscored that success would depend on deploying inert-anode technologies, expanding renewable-energy capacity, modernizing grid infrastructure, and upgrading and retraining the workforce.