The project of green hydrogen in Uruguay steps increasingly stronger due to a demand by the European Union (EU), mainly caused by the need to change energy sources driven by the depletion of non-renewable resources, aggravated by the war of Russia and Ukraine that jeopardized access to gas throughout the continent.
In this sense, Uruguay is a great competitor in the Latin American region due to its natural capacity to produce with renewable energy. That’s why, scope.com spoke with the president of the Uruguayan Association of Renewable Energy (AUDER), Marcelo Mulaon the green hydrogen scenario and the competition in Latin America.
First of all, according to Mula, it is necessary to understand that green hydrogen needs renewable energy that generates the necessary electricity to be able to separate the water molecules, through a process called electrolysis, where hydrogen is separated from oxygen. This process is one of the reasons that makes Uruguay attractive: its large renewable energy sources (wind and solar) and its water facilitate the production of green hydrogen.
“The impact of green hydrogen in Uruguay has to do, on the one hand, with the direct investment that will come to the country to be able to implement these hydrogen factories and new electricity generation plants. And, on the other hand, the export of the product and its derivatives, which means a new entry “explained the president of AUDER based on the roadmap published in December by the Ministry of Industry, Engineering and Mining (MIEM).
Uruguay leads the field of green hydrogen in the region
The first feasibility study for the generation of this product that was carried out in the region, in conjunction with the port of rotterdam of in the Netherlands, determined that the competitiveness of Uruguay is very high.
Regarding prices, according to the MIEM roadmap, the $1.2 per kilogram of hydrogen, vs. 1 dollar per kilogram offered by Chile. “Uruguay is on par with Chili and better than other countries in the region in terms of the price that their hydrogen could obtain for export”, specified Mula, establishing that the difference with Chile is not significant.
The particularities of the country make it different from others in the region such as Chile – its main competitor – where large sources of solar energy can be obtained but they are not complemented in the same place with wind power, something that does happen in Uruguay.
On the other hand, the president of AUDER stressed that the legal security It is also a point in favor when it comes to competing with other countries in the region, something that is due to the progress of the transition of the electrical matrix, which is not the case with its main competitor. “Chile and Uruguay are the countries that are at the forefront,” revealed Mula, but specified that the Andean country still has a long way to go in relation to the decarbonization of its energy matrix, heavily influenced by mining investments.
What about Argentina?
Another of the determining factors for the development of this type of energy, which requires large investments, are political changes, something that affects Argentina and Chile, causing foreign investors not to feel attracted. Otherwise, although there have been political changes in Uruguay – with the 2019 elections -, investors remained firm.
According to Mula, in the case of Argentina, specifically, there is no project dedicated to green hydrogen, but special attention is being paid to the production of natural gas which, in any case, would be useful for the manufacture of gray hydrogen. However, currently, the Australian company Fortescue Future Industries (FFI) ratified its intentions to invest in green hydrogen and renewable energy in the country, although it stressed the importance of creating a regulatory framework.
Palpable progress in Uruguay
This week, the MIEM selected the first enterprise that will use green hydrogen as an energy company, which will receive a non-reimbursable investment of 10 million dollars to carry out the energy transition project. The name is H24U and is integrated by companies saceem and CIR, what will implement a charging system powered by green hydrogen as main energy.
Uruguay has great opportunities to advance in processes that involve renewable energies as the main source, something that, in addition to putting the country at the forefront, foresees and anticipates actions to the imminent shortage of non-renewable energy sources not only in the country, but on the entire planet.
Source: Ambito
