Financial and regulatory approaches of Azerbaijani companies to the hydrogen energy transition

The use of hydrogen energy has become more important in recent years, especially as part of the shift to clean and sustainable energy. To grow investment in the hydrogen sector, the active involvement of the private sector is essential. Therefore, it is very important to understand what factors influence private companies to invest in hydrogen. This study looks at Azerbaijan as a case study—a small country that exports oil and gas, but is now focusing on renewable energy and building a green hydrogen value chain to produce hydrogen for the European Union. To explore the challenges and opportunities for Azerbaijani companies in the hydrogen value chain, the study conducted structured interviews with representatives from 65 companies. The findings show that how companies view government regulation depends on their size, sector, and years in operation. For example, medium-sized companies and those in transport and tourism support government involvement, while larger companies and those in the food sector are more cautious. However, the study found that private financial approaches did not vary based on company characteristics.