The sector of green hydrogen in Uruguay had a promising year where four projects millionaires obtained approval to be finalized; However, they are still awaiting the execution that should occur next year, which will be crossed by the presidential elections.
Uruguay was in the eye of the main investors of green hydrogen this year through four proposals that promise large sums of money with the aim of developing different projects that take the sector to a concrete position.
However, next year it should be possible to finalize the definitions for starting investments that would kick off a sector that promises to position the country at the forefront of planet-friendly energies and fuels. “We must put Uruguay on the radar because in no country of Latin America “There is commercial production of green hydrogen,” he explained. Marcelo Mula, president of the Uruguayan Renewable Energy Association (AUDER), to Ambit.
New market opportunities
One of the main objectives for Uruguay Is the sale of green hydrogen to Europe, mostly Germany, which is going through a complex situation due to the lack of energy and fuel due to the war between Russia and Ukraine. However, Mula announced that the US market was also interested in capital investment in the Uruguay for the production of green hydrogen.
“A market is also opening up, which will not only correspond to Europe, but also offers opportunities in USA to produce green hydrogen“, explained the president of AUDER, who highlighted the good relationship with the North American country, which could facilitate the completion of projects.
The election year complicates progress in green hydrogen
Although the year 2023 was marked by the development of different projects, this has the challenge of making at least one investment to make way for the promotion of the sector. However, this path requires government intervention that will be busy with the development of the presidential elections.
Faced with this, Mula announced that since the recently created Uruguayan Hydrogen Association They are promoting the signing of a multiparty agreement where the new roadmap approved two months ago is agreed upon where the political parties, beyond the elections, sign and commit to there being a State policy in favor of the development of the sector.
“Yeah Uruguay defines a roadmap supported by all political parties between now and 2040, which will give security to investments that there will not be any type of change in course,” explained the president of AUDER. However, he doubted that the pact could be signed this year, although he assured that all the political parties of the Uruguay They have consensus that the advancement of this sector will be a benefit for the country.
Four promising projects
According to Mula, this year they managed to environmental feasibility four projects that were waiting to be approved last year. The first one is the station hydrogen greenwhich will operate in the town Centenario, in the department of Peachand will supply the first project based on this clean energy, H24U. “This is the project that should be completed first,” said the president of AUDER.
The first “hydrogen” stationwhich will provide 100% green hydrogen, has the mission of supplying the ambitious H24U project, which will be in charge of the plant’s forest transportation UPM with 17 trucks adapted to run on hydrogen. The project has already received 10 million dollars from the State through Green Hydrogen Sector Fundco-organized by Ministry of Industry, Energy and Mining (MIEM), the Technological Laboratory of Uruguay (LATU) and the National Research and Innovation Agency (ANII).
On the other hand, there is the largest investment in the history of Uruguay – from the foreign company HIF – which foresees the production of 180,000 tons per year of e-gasoline and will generate peaks of up to 3,200 jobs. The investment is a total of 4,000 million dollars. “At the end of 2024, the company should make the investment decision,” explained Mula.
Meanwhile, the environmental feasibility for two other projects similar to those mentioned above where the production of fuel from green hydrogen with the objective of exporting product, as well as local production to feed forestry trucks. However, both are on a smaller scale than the previous ones. “It was a year where progress was made in the projects, although it was still there are none running and we are waiting to see whether or not they execute the investment,” explained Mula.
Source: Ambito
