In recent years, Latin America and the Caribbean have emerged as a rising star in the green hydrogen industry, with green hydrogen projects accounting for about a quarter of the global total, accelerating the pace of energy transformation.

Resources and Development: Highlighting Advantages and Rapid Growth

Green hydrogen, as hydrogen energy produced through renewable energy electrolysis of water, is of great significance in reducing dependence on fossil fuels and lowering greenhouse gas emissions. About 60% of the electricity in Latin America comes from renewable energy, leading the world, and its resource endowment provides strong support for the development of the green hydrogen industry.

In 2019, there were only three hydrogen production pilot projects in Argentina, Chile, and Costa Rica in the Latin American region. In just a few years, the number of green hydrogen projects has surged. Brazil has become a hot spot for attracting green hydrogen investment, with projects being launched in several northeastern states. In July 2022, Brazil's first green hydrogen plant was laid in the state of Bahia, with new investments and collaborations in March and June 2023. With abundant solar and wind resources, northern Chile is actively laying out in the field of green hydrogen, with multiple projects put into operation and achieving emissions reduction. In addition, there are numerous green hydrogen projects being developed or promoted in countries such as Mexico and Peru.

Policy and Support: Actively Creating a Favorable Environment

Under the wave of energy revolution, Latin American countries have fully leveraged their own advantages to formulate strategies, introduce policies, and provide financial support for the green hydrogen industry. According to a study by the Inter American Development Bank, 12 countries in the region have developed or are currently developing green hydrogen industry strategies. Chile has issued the "Green Hydrogen Strategy Action Plan" to strengthen industrial support and aim to become a major exporter of low-cost green hydrogen. Colombia has formulated a "National Hydrogen Roadmap" to promote development through financial support and regulatory development. Panama has announced its National Hydrogen Energy Strategy, aiming to leverage its location advantages to build a hydrogen energy hub.

Prospects and Challenges: Huge Potential, Still Needs Breakthrough

The International Energy Agency and other organizations predict that by 2050, global hydrogen energy consumption will increase significantly, creating a large number of jobs and economic growth for Latin America. However, the development of the green hydrogen industry faces many challenges, such as high initial investment costs, limited renewable energy power installation capacity, and insufficient supporting facilities. The region has an urgent demand for capital investment.

However, Latin America is actively engaged in regional and international cooperation in green hydrogen and related industries. Multiple collaborative platforms have been established, with multilateral institutions providing assistance. The cooperation between China and Brazil in the field of hydrogen energy has also shown great potential.

The development of green hydrogen industry in Latin America presents both opportunities and challenges. With the joint efforts of all parties, it is expected to play an important role in the global energy transition and achieve sustainable development.