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Application

Latin Ameri ca' s hydrogen
Latin America's hydrogen

opportunity: from national
opportuni
ty:
from
national
strategi es to regi onal cooperation
strategies to regional cooperation

By Mariano Berkenwald, IEA Clean Energy Transitions Programme Officer for Latin America
Jose M Bermudez, IEA Energy Technology Analyst

The COVID-19 pandemic and crisis has led to increasing attention to redouble efforts toward an energy transition
that would help the world reduce CO 2 emissions. We believe clean hydrogen is part of that broader policy and
reconstruction debate.

The growing momentum for hydrogen in development. Such an approach would be aligned with
Latin America developments in other parts of the world, for example
The use of hydrogen as a low-carbon fuel is taking an among countries around the North Sea. For this to
56 increasingly prominent role in global energy discussions. happen, regional dialogue and collaboration are key to
At the Osaka Summit in 2019, G20 leaders emphasised ensure that regulations are harmonised and that energy
that hydrogen technologies are critical to enable clean markets converge.
energy transitions as highlighted in the IEA report The Currently, hydrogen production and use in Latin
Future of Hydrogen. Since Japan published its Basic America is limited to a few countries, where it is used
Hydrogen Strategy in 2017, several other governments mainly as a feedstock for refineries and the chemical
– including most recently Spain, Germany and the industry, as in other parts of the world. Many countries
Netherlands, as well as the European Commission – are moving forward with strategies and pilot projects
have put forward hydrogen strategies and roadmaps, to foster its use as an energy carrier, however. This
and more are expected in coming months. Industry momentum is complemented by major private sector
has responded with significant announcements. Water initiatives, such as Argentina’s H2ar consortium and
electrolysis projects accounting for around 3 GW of Chile’s H2Chile, which group relevant private and public
capacity are expected to be deployed by 2023, dwarfing sector players with the goal of identifying opportunities
current installed capacity of less than 200 MW. and promoting the development of relevant
Latin America could become a key contributor to the partnerships and value chains.
global push towards low-carbon hydrogen. In line with While initial efforts could focus on reducing
global developments, governments in the region are emissions linked to existing hydrogen
taking decisive steps to foster hydrogen’s potential as
a key component of their clean energy transitions and uses, several countries are
a source of export revenues. At the recent IEA-OLADE eyeing the potential for hydrogen
Latin America Ministerial Roundtable, many ministers to decarbonise transport,
pointed to hydrogen as a promising energy carrier for especially heavy-duty and
the region’s longer-term energy transitions.
A collaborative regional approach to hydrogen could public transport fleets, as
complement national initiatives, allowing countries to well as opportunities to
capture complementarities in demand and production
patterns, and unlock synergies in infrastructure use and export low-carbon hydrogen

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