Europe’s race to decarbonize its energy system has intensified under mounting geopolitical pressures. This week, the European Commission approved sanctions banning new gas and LNG imports from Russia, reinforcing the urgency to diversify supply and accelerate the green transition.
Within this context, green hydrogen has emerged as a strategic asset, both for climate targets and energy security. Yet scaling production competitively requires international collaboration, with Latin America positioned as a key partner.
Brussels’ objective to import 10 million tons of renewable hydrogen by 2030 underpins this strategy. Achieving it requires more than environmental ambition; it is a geopolitical move to reduce dependency on external fossil fuels. The market response has been substantial: more than 70 projects and investment commitments exceeding $50 billion have been announced, with Chile and Brazil emerging as frontrunners. Chile’s 2020 national strategy prioritizes producing the world’s cheapest hydrogen, positioning the country as a global exporter. Brazil’s continental-scale projects, including the Pecém Port hub and Piauí Green Energy Park, aim to convert renewable potential into new revenue streams.
Other South American nations—Colombia, Uruguay, and Argentina—are following suit, albeit at varying stages of development. Across the continent, the consensus is clear: green hydrogen is transitioning from concept to an actively developing market.
Transport remains a critical challenge. Moving hydrogen across the Atlantic entails significant technical and economic hurdles, with no single solution yet dominating. Industry attention focuses on three pathways: green ammonia, leveraging existing global fertilizer logistics; green methanol, a liquid carrier compatible with current infrastructure; and liquid hydrogen, the most direct but technically demanding option, requiring storage at -253°C.
Currently, ammonia holds an advantage due to its technological maturity. Yet the discrepancy between announced projects and operational realities represents the sector’s principal risk. Green hydrogen initiatives generally require seven to ten years from planning to operation, meaning many projects may struggle to meet 2030 targets. European demand stability, through long-term purchase agreements, will be pivotal in determining which projects reach final investment decisions.
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