Latin American nations are under increasing scrutiny as key players in the burgeoning global hydrogen market, given the region’s substantial renewable energy resources. According to recent insights shared by industry expert Adrian Mason, the region — particularly South and Central America — boasts a remarkable 75% generation share of renewable energy projected for 2024, poised to climb to 79% by 2035. This is driven by a robust hydropower base supplemented by substantial growth in solar photovoltaic (PV) and wind power, expected to rise at compound annual growth rates (CAGR) of 9% and 6%, respectively, from 2025 to 2035.
The burgeoning interest in Latin America’s potential as a major player in green hydrogen production stems from these renewable assets, which are considered pivotal in driving the next wave of energy transition. However, leveraging this potential presents significant challenges. Substantial capital investments are needed to bolster both renewable generation and hydrogen production capacities. This requirement underscores the infancy of the hydrogen industry within the region, despite its immense promise.
In terms of anticipated developments, the top ten upcoming hydrogen projects represent a broad stroke across diverse geographies, emphasizing the ambitious scale of planned deployments. Market stakeholders like Enegix and Siemens Energy, alongside local players such as AES Brasil, are actively positioning themselves to partake in this green energy evolution. The successful execution of these initiatives could significantly align the region with global sustainable energy goals.
This interest in hydrogen aligns with broader environmental and economic trends, geared towards reducing carbon emissions and enhancing energy independence. Nevertheless, the path is fraught with obstacles, including infrastructure development and securing funding, which require extensive cross-border cooperation and policy support.
The strategic focus by countries in Latin America on harnessing their natural resources for green hydrogen production reflects a calculated move towards energy innovation. Yet, the realization of these ambitious projects hinges upon overcoming the logistical, financial, and technological barriers that currently restrain this promising sector.
