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Latin America and the Caribbean have an enormous potential to produce green hydrogen, thanks to their potential for the production of renewable energy. This region counts with a diversity of natural resources, such as solar radiation, constant wind currents, biomass, and hydropower in rivers, which could be utilized to produce clean and sustainable energy.


This is the region where renewable energy has the greatest share of participation in the energy matrix: by 2020, a 32% of the primary energy, and 63.6% of the electricity generated was thanks to renewable energy sources, with hydropower being the greatest contributor: 46.2% of the total electricity generated was thanks to this generation method, followed by wind power (6.7%) and solar (2.5%). All of this green and sustainable energy can be transformed into green hydrogen and its derivatives, helping the de-carbonization of the energy sector.

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In this scenario, it’s not casual that Chile, Colombia, Ecuador, Costa Rica, and Uruguay already have their own National Green Hydrogen Strategies, and that other seven countries are working on theirs, allowing them to focus their efforts to achieve their goals. These actions include fiscal incentives, subsidies, financing programmes, and favorable legal frameworks, amidst an international collaboration framework and public-private partnership agreements, to boost investment on green hydrogen projects in the region.

According to the H2LAC Index (2022), there are currently 84 minor-scale projects only in Latin America. Chile has, additionally, over 100 projects currently in development. There have also been announcements of large scale projects in Mexico, Costa Rica, Brazil, Uruguay, and Argentina.

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The development of green hydrogen in Latin America and the Caribbean could not only contribute to the mitigation of Climate Change, but also be the main driver towards a sustainable development with higher environmental and social standards, creating jobs for the region.

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