Uruguay has unveiled its definitive 2040 green hydrogen roadmap, outlining a plan to develop a domestic industry that could generate $1.9 billion in revenue a year and create over 30,000 jobs.

According to the roadmap, hydrogen production could reach 1 million tonnes per year by 2040, which would require the installation of 18GW of new renewables capacity and 9GW of electrolyzers.

Uruguay’s forestry and biofuels industries position it well to produce derivatives based on e-methanol, a sustainable fuel made by combining green hydrogen with carbon dioxide.

Production of derivatives is forecast to start from 2026, and the roadmap estimates that by 2030, the country could achieve a levelized cost of hydrogen of between US$1.20/kg and US$1.50/kg.

The roadmap also outlines the role of the state, which will play a key role in coordinating and driving the development of the green hydrogen economy.

Uruguay has several hydrogen projects in the development-permitting phase, and the government is working to create an enabling environment for the industry to flourish.