Argentina has unique natural conditions to produce green hydrogen and become a key exporter. The challenge: lack of clear rules and stable incentives to attract investments and consolidate a strategic industry in the energy transition.
Green hydrogen came to consolidate, in recent years, as one of the most promising vectors for the energy transition and decarbonization of industries. However, its global development does not advance to the initially projected rhythm. By 2025, a larger volume of production and a broader portfolio of customers were expected, but regulatory, political and economic factors slowed that process. Even so, the trend is clear: hydrogen will be essential in the next 25 years for sectors that are difficult to electrify, such as siderurgy, fertilizer production, heavy chemistry or sustainable fuels for aviation.
Internationally, projections are overwhelming. The International Renewable Energy Agency (IRENA) estimates that hydrogen and its derivatives could cover until the 12% of the final energy consumption in 2050 and contribute around 10% of the reduction of CO2 emissions necessary to meet the objective of 1.5 ° C. To reach that scenario, they will be needed near 5,000 GW of installed electrolyzersin front of the barely 0.3 GW existing todayand an electrical demand near the 21,000 twhwhich is practically equivalent to the current global consumption of electricity. These numbers reflect both the magnitude of the challenge and the enormous business opportunity that this new economy represents.
It is clear that Argentina is very well positioned on the resource map. The combination of intense and regular winds in Patagonia, high levels of solar radiation in the northwest and a wide availability of land suitable for renewable projects make it a country with exceptional natural conditions to produce green hydrogen at competitive costs. In a global context where countries seek to diversify suppliers and guarantee energy security, this advantage could translate into the possibility of becoming an export hub to Europe and Asia.
However, the main bottleneck is not technological. The industry already has the ability to produce green hydrogen, with compression, storage and digitalization systems that allow climbing projects, in addition to the offer of more efficient electrolyters. What is missing polish and advance, is a solid regulatory framework that offers legal certainty and long -term continuity. Today, the main challenge is the absence of Off Takers and public policies that define clear rules to attract long -term investments.
While green hydrogen is the final goal for its contribution to decarbonization, other intermediate alternatives also advance in the world that will allow the 100% emission -free transition, such as Blue hydrogen (produced from natural gas with carbon capture) and the Pink hydrogen (generated with nuclear energy). These variants allow to develop industrial capabilities and open markets while reducing production costs, although they do not completely eliminate the carbon footprint.
In Europe, for example, pink hydrogen the regulation of the European Union considers it as renewable by complying with low-intensity criteria of emission, according to article 26 (3) issued by the Directive on Renewable Energies-RED-. However, there are positions found among the Member States, but the advance of having included it is a commitment to accelerate the decarbonization and diversification of hydrogen sources to achieve the ambitious climatic objectives of Europe, such as those of the Green and Repavere pact.
In the case of our country, the debate is still incipient and lacks clear guidelines. Most of the proposals focus on green hydrogen, taking advantage of the potential of renewables, but there is no official road map that incorporates the other variants or a regulation that delimits differentiated incentives.
There are referents that can be of great value to specify local regulations. Chili, For example, he already approved his national green hydrogen strategy with specific production and export goals. Brazil advances, since 2023, with pilot and medium -scale projects integrated into its powerful renewable matrix, Uruguay and Colombia They have regulations that give predictability to investors and depending on them, establish incentives and production goals.
As a country, we must work together with the regulatory entities in a plan, clear and stable over time, of incentives to counteract the political and economic volatility that generates uncertainty in a sector that depends on stability to mature large -scale projects.
Beyond exports, green hydrogen opens doors to transform local industry. It could be a key piece in the reconversion of oil refining, for example, or in heavy mobility – good, trucks, trains, airplanes and ships – where direct electrification is more complex. It would also allow progress in the generation of synthetic fuels, a strategic alternative on the road to carbon neutrality.
The potential is on the table: take advantage of renewable resources to boost a new industry, generate specialized local employment and position the country as a clean energy exporter in an increasingly demanding world with the reduction of the carbon footprint. In Siemens, we work locally and internationally to work together with the private and public sector to take the key steps that allow us to continue growing and position ourselves as a fundamental player in the world energy transition.
Specialist in Industrial Process Automation at Siemens Argentina
Source: Ambito
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