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Green Hydrogen H2 News

Latin America Bets on Green Hydrogen

Anela DoksoBy Anela Dokso05/09/20232 Mins Read
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Latin America is betting big on green hydrogen, with investments reaching $48 billion, signaling a commitment to carbon neutrality.

As the world races to combat climate change, green hydrogen has emerged as a crucial player in achieving carbon neutrality. In Latin America, this commitment to a sustainable future is evident in the staggering $48 billion invested in the green hydrogen industry, according to the LAC Green Hydrogen Action Alliance. This substantial investment underscores the region’s determination to reduce emissions and transition towards cleaner energy sources.

While Europe leads the charge in hydrogen development, accounting for a substantial 35% of global investments with $117 billion, Latin America is emerging as a formidable contender with its $48 billion investments, comprising 15% of the total. This shift signifies the growing importance of Latin America in the global green hydrogen landscape.

To foster the development of green hydrogen, Latin American and Caribbean nations must make strategic decisions. These decisions should align with long-term sustainability objectives and emphasize the benefits of public-private cooperation. The collaboration between governments and the private sector is crucial for the successful implementation of large-scale hydrogen projects.

Abundant Renewable Resources

Latin America and the Caribbean possess abundant renewable resources and a strategically advantageous geographic location. These factors are poised to facilitate the production of competitive renewable hydrogen products and provide access to international markets. The region’s vast potential for green hydrogen production is further underscored by its wealth of renewable energy sources.

The private sector plays a pivotal role in advancing hydrogen projects in the region. While some projects are already operational, most are in the pre-feasibility and feasibility development stages. South America is at the forefront of project concentration, while Central America is in the early stages of designing roadmaps and conducting pilot projects.

International hydrogen trade is on the horizon, but the establishment of certification systems is essential. These systems must guarantee the credibility and transparency of hydrogen products, distinguish different types of hydrogen, assess their carbon footprints throughout the lifecycle, and adhere to sustainability criteria.

In conclusion, Latin America’s substantial investment in green hydrogen underscores its commitment to carbon neutrality and a greener, more sustainable future. As the world seeks cleaner energy solutions, the region’s potential in renewable hydrogen production positions it as a key player in the global energy transition.

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