Latin America could become a key player in the global clean hydrogen economy, thanks to its vast renewable energy resources. A recent report published by the World Economic Forum, “Accelerating the Clean Hydrogen Economy in Latin America,” highlights the region’s immense potential for exporting the resource, while also noting the challenges that lie ahead in scaling up clean hydrogen production.
The report outlines three strategic pathways for Latin American countries: becoming net exporters of clean hydrogen, focusing on local efforts to decarbonize, and targeting specific sectors where clean hydrogen can elevate existing energy systems.
One of the region’s biggest advantages is its abundant renewable energy, which is essential for producing affordable clean hydrogen. Countries such as Chile and Argentina are well positioned to become net exporters. Chile aims to produce the world’s cheapest green hydrogen by 2050. Argentina, meanwhile, expects that by 2030, over 80 per cent of its hydrogen demand will come from international markets.
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These ambitious targets underline the region’s potential to lead in the clean hydrogen space. However, when it comes to implementation, the report identifies numerous barriers, some of which include high production costs, low domestic demand, lack of skilled talent, and slow pace of infrastructure development.
To address these challenges, the report recommends that Latin American countries must focus on:
Identification of regional synergies and opportunities to work together; fostering cooperation and collaboration; obtaining community buy-in; and sharing lessons learned from countries at more advanced stages of maturity. These factors will prove essential in accelerating progress towards addressing mutual challenges and bottlenecks.
“Accelerating the Clean Hydrogen Economy in Latin America,” by Roberto Bocca, Andrés Rebolledo, Muqsit Ashraf, & Marisol Argueta de Barillas. World Economic Forum, August 2024.
Read the full report originally published by the World Economic Forum on August 15, 2024.
