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Green Hydrogen H2 News

Germany and Uruguay sign agreement for green hydrogen

Arnes BiogradlijaBy Arnes Biogradlija30/03/20233 Mins Read
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To deepen relations and collaborate on the second energy transition, Uruguay and Germany inked a significant agreement. This agreement may pave the way for future exports of green hydrogen and its derivatives.

The agreement to include Uruguay in a select group of nations with which Germany cooperates closely on energy issues was signed by the Minister of Industry, Energy and Mining (MIEM), Omar Paganini, within the framework of the “Berlin Energy Transition Dialogue 2023” (BETD) that takes place in the capital of Germany. According to Surtidores, one benefit the nation might obtain is the ability to export hydrogen to Europe.

Minister Paganini and Robert Habeck, the vice chancellor of Germany and the federal minister of economy and climate protection, were present when the agreement was signed in the “Willy Brandt” Room of the German Foreign Ministry.

Uruguay can play a key role as a supplier of new energy from renewable sources, with a complementary profile with European countries, according to Paganini. “The initiative reinforces Uruguay’s commitment to decarbonization and Germany’s recognition of our trajectory and potential,” he added. The countries of the South, which have an abundance of renewable energy, are part of the solution, he continued, and supplier diversification is now strategically important from a geopolitical standpoint.

To establish a global network to facilitate the exchange of intergovernmental energy policies, foster innovation in this field, and promote economic cooperation, the Federal Ministry of Economy and Climate Action has created the Energy Partnership for nations committed to the full energy transition. Uruguay will now join the likes of Algeria, Brazil, Canada, Chile, China, Ethiopia, India, Japan, Jordan, Mexico, Morocco, South Africa, South Korea, Turkey, Tunisia, Ukraine, and the United Arab Emirates as a result of this agreement.

The administration claims that the signing of a joint declaration of intent offers a broad framework to foster technical collaboration and debate about energy policy. This will make it possible to build and upgrade sustainable infrastructure as well as modern, effective markets, especially through promoting the use of renewable energy sources and related technology.

Uruguay’s significance in the green hydrogen scenario

According to Alejandro Stipanicic, president of the National Administration of Fuel, Alcohol, and Portland (Ancap), “Berlin Energy Transition Dialogue 2023,” where Uruguay is presenting its long-term plans for energy transition internationally, “the production of hydrogen and derivatives that Ancap promotes through various projects are an important part of Uruguay’s presence here in Berlin.”

Green hydrogen represents a significant business opportunity for Uruguay, and MIEM believes that following a significant 6,000 million dollar investment, it might be worth 2,100 million dollars by 2040. Uruguay XXI is seeking the entry of new investors for this disbursement, with companies from Spain, Germany, and the Nordic region standing out.

Similarly, the authorities are supporting Uruguayan projects centred on green hydrogen and concluding significant contracts, like the one they will do with Germany.

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