Peru has taken a decisive step in the global race toward sustainable energy with the approval of the Detailed Environmental Impact Study (EIA-d) for the Horizonte de Verano green hydrogen project.
With an investment exceeding $11.2 billion, this initiative, led by Horizonte de Verano SAC, is poised to become the largest green hydrogen production facility in Latin America. Located in Arequipa, the project aims to produce green hydrogen primarily for ammonia synthesis, a critical component in the chemical and energy sectors.
According to the International Energy Agency (IEA), global demand for hydrogen reached 94 million metric tons in 2021, with less than 1% produced from renewable sources. By 2030, the global green hydrogen market is projected to grow at a compound annual growth rate (CAGR) of 54%, driven by decarbonization targets and industrial demand.
Arequipa, the project’s chosen location, offers significant advantages. The region boasts abundant solar radiation, a critical resource for the photovoltaic solar plant that will power the electrolysis process. Additionally, the project includes the construction of a water desalination facility, addressing concerns about water scarcity in the arid region. These elements underscore the project’s commitment to sustainability, but they also highlight the complexity of its execution.
Water desalination, while essential, is energy-intensive and costly. According to a 2022 report by the World Resources Institute, desalination plants consume approximately 3-4 kilowatt-hours of energy per cubic meter of water produced. For a project of this scale, ensuring a reliable and sustainable water supply will be a significant logistical and financial challenge.
The Horizonte de Verano project is not just an environmental endeavor; it is also an economic one. Sergio González Guerrero, Peru’s Minister of Production, has emphasized the project’s potential to boost employment and regional development. The plant is expected to create thousands of jobs during its construction and operational phases, providing a much-needed economic stimulus for Arequipa.
According to a 2023 analysis by BloombergNEF, the levelized cost of green hydrogen in Peru could be as low as $1.50 per kilogram by 2030, making it one of the most cost-competitive producers globally. This cost advantage is driven by the country’s abundant renewable resources and relatively low labor costs.
The success of the Horizonte de Verano project will depend on several factors, including technological innovation, regulatory support, and international collaboration. The project’s reliance on cutting-edge technologies, such as high-efficiency electrolyzers and advanced energy storage systems, underscores the need for ongoing research and development.
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