Consolidation and Progress: The Evolution of Green Hydrogen in Latin America
Key Ideas
  • Green hydrogen projects in Latin America are undergoing a consolidation phase, with only serious and committed players remaining in the market.
  • Latin America benefits from vast land for projects, clean power grids, and expertise in handling hydrocarbons, supporting the progression of green hydrogen initiatives.
  • The region is advancing in the environmental review phase, with key focus areas including offtake agreements, infrastructure development, and production cost optimization.
  • Latin America's green hydrogen landscape includes 76 projects in early stages, with major investments planned in countries like Brazil, Chile, and Argentina.
Last year marked a period of consolidation for green hydrogen projects in Latin America and globally, with a shift towards serious and committed participation in the market. The upcoming H2LAC 2025 conference in São Paulo is set to shed light on the current state of play, with industry experts emphasizing the need for long-term dedication to industrial decarbonization. Latin America's favorable conditions, including abundant land, clean power grids, and hydrocarbon expertise, are key drivers for the region's green hydrogen advancements. Despite facing challenges in coordination among multiple stakeholders, progress is evident, especially with recent milestones such as the IMO's adoption of fuel standards for shipping. The agreement to tackle shipping emissions further boosts the outlook for green fuels like green ammonia and synthetic options, aligning with the region's growing focus on sustainability. Notably, Latin America hosts 76 green hydrogen projects in various stages of development, with significant investments planned in countries like Brazil, Chile, and Argentina. Chile's US$16 billion H2 Magallanes green ammonia project stands as a flagship initiative, symbolizing the region's commitment to a greener future. Overall, the evolution of green hydrogen in Latin America showcases a promising outlook for the region's role in the global energy transition.
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