Paraguay, known for its abundant hydroelectric energy, is set to take advantage of the boom in green hydrogen production, according to Dr. José Antonio Bogarín, executive director of the Itaipu Technology Park (PTI).
With green hydrogen selling for between 5 and 7 dollars per euro in Europe, Paraguay could boost its income by entering this market, as national production can do so at 1.2 dollars per euro.
By utilizing the surplus energy sold to other countries such as Argentina or Brazil, Paraguay could double the world production of green hydrogen, said Dr. Bogarín. “We can double the world production of green hydrogen, that is the potential that our country has with the hydroelectric energy it produces,” he added.
Six foreign companies have already expressed interest in Paraguay’s green hydrogen market and have signed a memorandum with the National Electricity Administration (Ande) for the supply of electricity, with two already building industrial plants. These plants are much larger than those in Europe, with a capacity of 300 MW compared to the 20 MW of European plants, according to Dr. Bogarín.
Green hydrogen can provide great autonomy to electric mobility and industries as fertilizers can be produced in the process, but Dr. Bogarín warned that Paraguay needs to do more to promote itself in the global market. “When you see the portfolio of Chile or Uruguay, which are also in the green hydrogen race, the country’s marketing is better than ours,” he said.
Despite this, Paraguay has a competitive advantage, as Itaipu Lake alone can generate the equivalent of 8 solar power plants, according to Dr. Bogarín. A single Itaipu turbine can generate 170 million dollars a year, and with the capacity to produce 133,000 tons of green hydrogen per year, the country could earn around 400 million dollars, based on current demand.
Paraguay must act quickly to take advantage of the opportunities offered by green hydrogen, and with its abundant hydroelectric energy, it is well-positioned to make a significant impact on the global market.