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Kallanish Kallanish

Knowledge matters Knowledge matters

December, 7th 2021

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OCT 15
14:10

LatAm has low-cost H2 producer potential: analyst

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Latin American countries are well-positioned to participate in the growing hydrogen market in the coming years, says GlobalData. The abundance of renewable and biomass resources could allow the region to produce low-cost green hydrogen, with Chile leading the world`s list by 2030.

The main challenge for the development of the supply chain, however, would be establishing an effective policy environment, Kallanish understands.

“In the best possible way, each country would provide incentives for decarbonisation and facilitate a build-up of hydrogen infrastructure," energy transition analyst Miles Weinstein estimates. This initiative could be favoured by a stable political environment, while the support of national oil companies will be a decisive factor for the development of the hydrogen market.

The growing number of projects in the development of a hydrogen supply chain in Latin America confirms the region's intention to make sooner the transition to the use of green energy. More than 25 low-carbon hydrogen projects have entered the pipeline in recent years, compared to just three small-scale active projects. Latin American governments are taking advance of the opportunity. Chile released its hydrogen strategy in 2020, while Colombia is expected to do that this year. Argentina, Brazil, Uruguay and several other countries are on the way.

“The majority of the countries are looking to satisfy domestic demand using blue or green hydrogen in the short term, before expanding production for international export markets in Asia, Europe and North America by around 2030,” the analyst observes.

Due to their use of clean electricity, Paraguay, Costa Rica, Brazil, Uruguay and Colombia could feasibly begin producing green hydrogen in the short term. Others such as Chile and Argentina have untapped projects due to their excellent wind and solar resources, and, in the case of Chile, an ambitious decarbonisation plan. These countries are likely to expand their renewable energy portion in the future, GlobalData adds.

Todor Kirkov Bulgaria