Green hydrogen: new report highlights opportunities in Latin America and the Caribbean  

The LAC Green Hydrogen Action Alliance released its 2023 report on the present and future of this renewable energy source in the region and its potential to combat the climate crisis
 

Latin America and the Caribbean have great potential for the generation of green hydrogen (H2) due to their abundant solar, wind, and hydroelectric energy resources over their energy demand, according to the "Renewable Hydrogen in Latin America and the Caribbean: Opportunities, Challenges and Pathways" report published by LAC Green Hydrogen Action. This organization brings together the Green Hydrogen Associations of Colombia, Costa Rica, Chile, Mexico, and Peru.

The report states that there are more than 140 green hydrogen projects in different stages of development in Argentina, Brazil, Chile, Colombia, Costa Rica, Peru, Mexico, and Uruguay. It also details that most of them are of private participation and calls for strengthening public and international collaboration to promote this form of energy, a key aspect of achieving decarbonization goals.
Renewables in Latin America and the Caribbean comprise 29.6% of the total energy production, according to the Latin American Energy Organization (OLADE). Within this category, hydroelectric power ranks first, while wind and solar energy are showing significant signs of growth.

Of the eight countries covered in the report, five of them (Chile, Colombia, Argentina, Uruguay, and Costa Rica) have outlined public policies in the form of national strategies, roadmaps, or plans on green hydrogen. Peru and Mexico have not yet set a formal strategy, although the hydrogen associations of both countries have shared guidelines for future use. In Brazil, the national strategy has not yet been consolidated, although numerous projects have been announced.

In terms of implementation, Chile leads the list with 50 green hydrogen projects, either under development or operational. The country is followed by Brazil (with 42 projects), Colombia (27 projects), Argentina (11 projects), and Mexico (9 projects).

The report sees the greatest potential for this form of energy in Chile, Colombia, and Brazil, taking into account factors such as the development of the H2 ecosystem, the number of ongoing projects, regulations and incentives at the national level, the adoption of H2 for mobility, and international cooperation.

However, LAC Green Hydrogen Action mentions that there is still a long way to go for green hydrogen to be consolidated as an alternative in the region. Governments are expected to offer subsidies and incentives to make offtake negotiations more attractive, thus minimizing investment risks. The Alliance also proposes the implementation of certification systems to promote transparency and address the sustainability of all projects.
Along the same lines, the International Energy Agency calls for removing regulatory barriers, establishing long-term goals, stimulating commercial demand, sharing knowledge on H2, and addressing investment risks, among other items.