Chile and Colombia lead the race for green hydrogen in Latin America

Although its role as the future fuel is not 100% defined, the race for countries to be among the producers is in full swing.

Globally, Australia, the Netherlands, Germany, China, Saudi Arabia, and Chile are leading through various projects.

Green hydrogen is obtained mainly by subjecting seawater to an electrolysis process with renewable energies, such as wind or solar.

In addition to the southern country, in Latin America, seven countries have already included issues related to the development and production of this element in their roadmaps.

However, only four include it in their long-term strategy programs: Colombia, Uruguay, Costa Rica, and Chile.

In the framework of the international webinar “LAC Green Hydrogen Action”, organized by the Latin American Hydrogen Alliance, José Javier Gómez, ECLAC Environmental Affairs Officer, explained the countries’ strategy for the development of green hydrogen is a crucial process and should be as participatory as possible.

“Hopefully, it will be a state policy that transcends governments and has a permanent momentum,” he said.

In addition, he promoted that even the countries that are based on hydrocarbons, such as oil and gas, initiate the knowledge of this element, which serves as a base – for example – for synthetic fuels.

According to Gómez, by 2050, oil production will only represent a quarter of what it is today, making industries suffer.

He explained that governments’ strategies for laying the regulatory groundwork for green hydrogen must be flexible to accommodate global circumstances.

Globally, billions of dollars are being invested. Still, this looks more complex in the region because “countries do not have the fiscal capacity to make the investments they are making in places like Japan,” he explained.

SOME PROJECTS

While it takes off and regulatory issues are resolved, the countries see projects with varying degrees of progress.

The government of Colombia, for example, financed ten green and blue hydrogen initiatives (based on fossil fuels), which will be developed by nine companies, including Energal, BioGas, and H2 Nostrum.

These companies join Promigas, Ecopetrol, and TGI, working since late 2021 on pilot projects.

In the case of Chile, there are six projects involving investments of about US$1 billion to be developed by HIF, Enel Green Power, Engie, and GNL Quintero, among other companies.

Recently, the Hydra Consortium, formed by entities such as the French Engie and the Chilean Antofagasta Minerals, presented the prototype of a hydrogen power train, which is already being tested in a mining site, to be used in mining trucks.

SUPPLYING THE DEMAND

In the opinion of experts, generating demand for this fuel is relevant to its future viability.

According to Gómez, companies such as Ecopetrol, Petroperú, or Codelco in Chile can play a relevant role by buying the types of hydrogen -such as blue or gray- that other countries are developing to create a relationship of trust between supply and demand.

Assuming that there are still steps to be taken on issues such as production certification to ensure that it meets specific standards.

Each jurisdiction in the region has its challenges, according to their presentations at the LAC Green Hydrogen Action.

Daniel Cámac, president of the Peruvian Hydrogen Association, noted that his country needs to work on increasing awareness of the strengths and benefits of using green hydrogen in the economy.

“We can be in this global race to produce hydrogen at competitive prices, but without this strategy, it is difficult to move forward,” he says.

Monica Gasca, executive director of the Colombian Hydrogen Association, said they will begin to “promote knowledge of hydrogen to reach the demand side, to encourage it.”

Maria Paz de la Cruz, general manager of H2 Chile, highlighted the country’s progress in hydrogen development but emphasized that “existing regulations still need to be improved; there are rules that should be looked at in terms of permitting and standards”.

The president of the Mexican Hydrogen Association, Israel Hurtado, pointed out that in his case the challenge is to start production and make progress in reducing costs, which is key to encouraging demand.

The coordinator of the Alliance in Costa Rica, Juan Guillermo Murillo, emphasized that the development of the green hydrogen market is still developing, as well as supply and demand, so there is a whole supply chain and suppliers to promote.

With information from DF SUD