The Ministry of Industry, Energy and Mining (MIEM) in Uruguay has chosen the H24U project as the country’s first venture to utilize green hydrogen as an energy source.
The project, selected by the Green Hydrogen Sector Fund, will receive a non-reimbursable funding of $10 million over a 10-year period to facilitate the development, production, and use of green hydrogen.
The H24U project, led by the consortium of Saceem and CIR, aims to implement a charging system powered by green hydrogen, marking a significant step in Uruguay’s second energy transition. Initially, the project will focus on adapting forest cargo transfer trucks to utilize green hydrogen as their primary energy source. Currently, these trucks account for 28% of energy demand in Uruguay and largely rely on petroleum derivatives.
The adoption of green hydrogen in the transportation sector is a crucial component of reducing carbon emissions and transitioning towards more sustainable energy alternatives. By incorporating green hydrogen technology into cargo transfer trucks, Uruguay aims to significantly decrease its reliance on fossil fuels and promote cleaner transportation options.
In addition to truck electrification, the H24U project also explores the possibility of injecting green hydrogen into the natural gas network in Paysandú in collaboration with Conecta, a local company. This initiative serves as a pilot project to assess the feasibility of scaling up green hydrogen integration and progressively decarbonizing various sectors.
The Green Hydrogen Sector Fund executed a rigorous evaluation process to select the H24U project. The first stage involved a call for profiles, followed by the submission of full commercial projects. A technical committee comprising representatives from the academic sector, MIEM experts, and specialists from the Netherlands and Germany evaluated the proposals and recommended the chosen project.
The investment of $10 million in the H24U project signifies Uruguay’s commitment to fostering the development and utilization of green hydrogen. This funding will support the consortium in implementing green hydrogen production and storage technology, enabling the successful integration of green hydrogen as an energy source in various applications.
Adoption of green hydrogen
The adoption of green hydrogen has the potential to bring significant environmental, economic, and energy security benefits. Green hydrogen, produced through renewable sources, offers a sustainable alternative to conventional fossil fuels, reducing greenhouse gas emissions and mitigating climate change impacts. Moreover, it promotes energy independence and resilience by diversifying the energy mix and reducing reliance on imported fossil fuels.
While the H24U project represents a significant step towards Uruguay’s green hydrogen transition, challenges remain. The production and distribution infrastructure for green hydrogen needs further development, and cost-effectiveness needs to be achieved for large-scale deployment. Collaboration between government agencies, research institutions, and private enterprises will be essential in addressing these challenges and creating a supportive ecosystem for the widespread adoption of green hydrogen.