What is the status of the green hydrogen pilot project in Uruguay and the government’s roadmap

RIO DE JANEIRO, BRAZIL – In the coming weeks, Uruguay will launch the first international call for proposals for those interested in developing pilot projects to produce green hydrogen and derivatives as synthetic fuels.

The Ministry of Industry, Energy, and Mines (MIEM), together with the National Agency for Research and Innovation (ANII), will issue the first international call for proposals to develop green hydrogen pilot projects in the country in March.

Last April, the first data room was held, where the H2U project focused on producing renewable hydrogen for use in heavy and long-distance transport. This was the first step of the plan to consolidate Uruguay as a future supplier and exporter of this product and its derivatives.

The technical teams of MIEM, Ancap, and UTE held 35 meetings with companies, business groups, and institutions from 16 countries. A great deal of interest was noted from key players in the energy industry and the hydrogen sector in particular.

A tour of Europe was also undertaken to learn about the evolution of global markets and see how Uruguay could position itself to attract investment.

Companies will be able to apply for government support, the amount of which is being determined to lay the groundwork for the RFP. “The government support is granted in a joint effort between MIEM, ANNI, and LATU to make the tender attractive to potentially interested parties and allow somewhat larger projects,” he said.

WHAT IS H2U?

The H2U project, which is open as an option to investors, has an entirely private business model. Companies must provide consumers with a fleet of buses and trucks and already have purchase contracts for the green hydrogen to be produced.

The goal is to have a fleet of at least ten nine-meter buses or 17-ton trucks. It is estimated that this fleet will travel at least 3500 kilometers per day.

The electrical energy consumed by the plant – with a minimum required capacity of 1.5 MW – can be supplied by UTE through a pricing model negotiated according to demand and daily or weekly consumption schedules. There is also the possibility that the energy will be self-generated.

The private companies will have to install their equipment, but the possibility of using Ancap’s equipment at the Capurro plant is also offered. The investment required to build the project, including the plant and vehicles, is estimated at between US$10 million and US$20 million, as indicated when the data room was presented last year.

Interested parties will also be able to take advantage of the benefits provided for in the Investment Incentives Law and other public support, which is still being determined.

FAHRPLAN

On the other hand, work is underway to officially present Uruguay’s roadmap in the coming months, preceded by public consultation on the draft.

The country is considered to have many attributes that it can take advantage of as a producer and exporter. These include the excellent potential for low-cost electricity generation from wind and solar power combined with photovoltaics. The roadmap also has green hydrogen and other products in mind but in the longer term.

As an example, Gonzalez explained that European countries are making significant investments to produce hydrogen for various applications, as well as generation capacity outside their countries.

For example, the German government is expected to provide funding for German companies to invest in exporting hydrogen to Latin America and other parts of the world.

With information from El Observador