April 28, 2021 Read More →

Latin America possesses potential to become key hydrogen player

OilPrice.com:

As oil majors around the world solidify their positions in the hydrogen industry, the IEA has highlighted Latin America as a clear area of opportunity for the production of what many expect to be the energy source of the future.  “Latin America could become a key contributor to the global push towards low carbon hydrogen”, the IEA stated in a 2020 report.

Hydrogen fuel is forming part of the long-term global energy transition as Big Oil strives to decarbonize its energy production over the next decades. Hydrogen provides a carbon-free base for synthetic fuels to power transportation and manufacturing, making it an ideal energy source. 

At present, hydrogen production across Latin America is limited in scope, however, pilot programs are steadily being developed to trial hydrogen use as an energy carrier.

Argentina, Brazil, Chile, and Colombia have all released strategies to develop their hydrogen industries, all expecting to become low-carbon hydrogen exporters in the coming years. Mexico, Paraguay, and Uruguay are also looking to use hydrogen energy to decarbonize industry and transportation, but have yet to establish political strategies to develop the sector.

As around 120 countries around the world have announced plans to achieve net-zero within the next few decades, Latin America could position itself to be a hydrogen market leader, with Chile taking the regional lead, if it invests in the industry now.

[Felicity Bradstock]

More: Can Latin America Become The Middle East of Hydrogen?

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