Conclusion of Mexico’s participation at the 27th Conference of the Parties on Climate Change
Press Release 457
Secretaría de Relaciones Exteriores | November 21, 2022 | Press Release
Conclusion of Mexico’s participation at the 27th Conference of the Parties on Climate Change
- The Mexican delegation was headed by Foreign Secretary Marcelo Ebrard and Undersecretary for Multilateral Affairs and Human Rights Martha Delgado
- The delegation also included negotiators, legislators, civil society organizations and the private sector
- Mexico presented its updated Nationally Determined Contribution, its National Action Plan on Gender and Climate Change, the Sonora Plan, and the results of the Transportation Electrification Task Force with the U.S. government and the University of California
Yesterday marked the conclusion of the 27th United Nations Conference of the Parties on Climate Change (COP27), which was held in Sharm El-Sheikh, Egypt from November 6-20. The meeting was held under the motto “Together for Implementation,” and it closed with important agreements on creating a loss and damage fund for vulnerable countries affected by climate change; the operationalization of the Santiago Network to provide technical assistance to countries that have already suffered the adverse effects of climate change; and the inclusion of a reference to the right to a clean, healthy and sustainable environment, promoted by Mexico.
The Mexican delegation headed by Foreign Secretary Ebrard included officials from the Ministries of Foreign Affairs, Finance, Environment and Agriculture; the National Institute of Ecology and Climate Change; legislators; and representatives of local governments, the private sector and civil society organizations, coordinated by the Mexican Foreign Ministry. At the Foreign Ministry, the strategic and operational work was led by Undersecretary for Multilateral Affairs and Human Rights Martha Delgado, with support from the areas for Global Issues, Global Investment, and Human Rights, with the accompaniment of the area for Political Coordination.
In his remarks, Foreign Secretary Ebrard said that Mexico attended the COP27 to renew the Paris Agreement commitments and ensure that the right to a clean, healthy and safe environment is recognized in its implementation. He also stressed Mexico’s commitment to reducing greenhouse gas emissions by updating its Nationally Determined Contribution (NDC).
“Mexico knows that big steps need to be taken to address the climate challenge. That is why President Andrés Manuel López Obrador has resolved to further enhance our unconditional target from a 22% to a 35% reduction in greenhouse gas emissions. This increased climate ambition includes adding 105 GW of clean energy; doubling the production of clean energy in Mexico; capturing 98% of methane gas emissions in oil wells; two million hectares of new protected natural areas; using the Sembrando Vida (Sowing Life) Program to reforest 1.5 million hectares with more than 1.1 billion trees; building hydrogen plants; and implementing an ambitious strategy for energy efficiency, electromobility and transportation electrification,” he said.
On electromobility, Undersecretary Delgado and the Director General for Global Investment, Iker Jiménez, together with Isabel Studer, Director of the University of California Alianza México, and Reed Schuler, Managing Director and Senior Advisor to U.S. Special Presidential Envoy for Climate John Kerry, gave a progress report on the Transportation Electrification Task Force. This initiative, coordinated by the Foreign Ministry and consisting of academics, and the public and private sectors of Mexico and the U.S., will prepare a diagnosis and make recommendations to identify opportunities for the automotive industry as it transitions to electric vehicles.
Another important presentation was that of the Sonora Development Plan, made jointly by the Foreign Secretary and Francisco Acuña, Sonora State Government, with U.S. Special Presidential Envoy for Climate John Kerry. With this plan, the Mexican government will develop a sustainable ecosystem to generate solar energy and promote the lithium industry for the automotive sector.
On COP27 Gender Day, Mexico and the Women’s Environment and Development Organization (WEDO) organized an event entitled “Feminist foreign policy and human rights: a pathway to climate justice.” Undersecretary Martha Delgado and Cristopher Ballinas, Director General of Human Rights and Democracy, presented the results of Mexico’s feminist foreign policy and its National Action Plan for Gender and Climate Change. The event was attended by Liesje Schreinemacher, Netherlands Minister for Foreign Trade and Development Cooperation; Kay Harrison, New Zealand Climate Change Ambassador; Anna Lührmann, German Minister for Europe and Climate; Julio Cordano, Head of the Department of Environment, Climate Change and Oceans of the Chilean Foreign Ministry; Alexandria Gordon, WEDO Program Manager; and Judit Arenas, main adviser of APCO Worldwide as moderator. At the meeting, the discussion focused on how countries with a feminist foreign policy can build advanced and coherent languages to promote women’s human rights in international forums and, above all, in the negotiations on environment and climate change.
At COP 27, the Mexican negotiating team led by Camila Zepeda Lizama, Director General of Global Issues, announced Mexico’s adherence to the following climate initiatives:
- The Food and Agriculture for Sustainable Transformation (FAST) Initiative to improve the quantity and quality of climate finance for agriculture and food systems by 2030
- The International Drought Resilience Alliance initiative to promote a coordinated and effective response to disasters to reduce the vulnerability of nations and communities to the economic, social and environmental impacts of drought by focusing on preparedness and adaptation
- The Initiative on Climate Action and Nutrition (I-CAN) to help Member States adopt climate change adaptation and mitigation measures that improve nutrition. It will deliver technical support to achieve the transformation of food systems.
- The Friends of the Cryosphere Initiative, which highlights the drastic changes to mountainous and polar regions and sea level rise, and analyzes the implications of these changes for mitigation and adaptation approaches and from a loss and damage perspective
- The Geneva Pledge for Human Rights in Climate Action to facilitate the sharing of best practices and knowledge on human rights and climate change
- Mexico also participates in the Sustainable Ocean Alliance, which aims to take better advantage of the great potential of our seas and coasts.
- In addition to the Climate Ambassadors initiative, Mexico joined the signing of a Memorandum of Understanding with the Netherlands that promotes the participation of youths in negotiations, decision-making and implementation of climate actions.
Lastly, at the COP27 ministerial roundtable, Undersecretary Martha Delgado said that Mexico “joins the voices of developing countries that demand a profound change in addressing the climate crisis and reparations for damages to the most vulnerable people, based on the principle of climate justice.” She said that the countries that have historically been the biggest contributors to greenhouse gas emissions must take responsibility for them. She concluded by saying that Mexico attended COP27 with renewed enthusiasm and support for multilateralism, and she acknowledging the seriousness of the world’s climate situation, calling on all parties to work together to meet the challenges that face the planet.
This is the second year that Mexico has put together a negotiating team of young people, including, in addition to the young Foreign Ministry officials, two women and two men from the Operation COP Program who were trained for and directly involved in the technical negotiations. Mexico is the only country in the world with a predominantly youthful delegation, including indigenous youths. This practice will hopefully open the door for youths to participate in international negotiations on the environment and climate change.
Green Hydrogen
Kawasaki Heavy Industries has reportedly withdrawn from a plan to create “clean” hydrogen from brown coal from the Latrobe Valley.Credit:Eamon Gallagher
A multibillion-dollar plan to create “clean” hydrogen from Australian brown coal and ship it to Japan is on the brink of collapse.
Japanese media have reported Kawasaki Heavy Industries has withdrawn from the trial, blaming procurement delays.
The controversial plan was billed as a lifeline for the Latrobe Valley’s ageing brown coal industry. Under the plan, hydrogen would be extracted from coal, creating the world’s first liquefied hydrogen supply chain.
Proponents said the joint venture, led by one of Japan’s largest industrial conglomerates, would use commercially unproven CO² capture and storage technology to sequester carbon in Bass Strait.
It was also to send the super-cooled hydrogen extracted from coal in purpose-built bulk carriers out of Hastings to Kawasaki in Japan’s industrial heartland.
The Hydrogen Energy Supply Chain (HESC) project was a partnership between international fossil energy companies, including Kawasaki Heavy Industries Ltd, Royal Dutch Shell and AGL.
Kawasaki Heavy Industries’ hydrogen factory in 2022 in Kobe, Japan.Credit:Christopher Jue
It was supported by a $2.35 billion investment from the Japanese government and $50 million in start-up investment from the Victorian government in 2018.
Japanese outlet Nikkei reported that Kawasaki Heavy Industries had abandoned its bid to establish an international supply chain to procure hydrogen from Australia because it had become “difficult to procure hydrogen in Australia within the deadline”.
“With the completion of the demonstration test by fiscal year 2030, as originally scheduled, being an absolute requirement for ensuring competitiveness, the company has changed hydrogen procurement to domestic,” Nikkei reported. “It has also downsized its hydrogen carriers and is now steering toward a more ‘realistic’ solution.”
The development comes amid growing doubts about Australia’s ambitious push to become a major producer and exporter of clean-burning “green” hydrogen, which is a promising future energy source that emits only water vapour and could substitute fossil fuels to help clean up heavy-polluting industries.
‘This disastrous project has never stacked up … Now the wheels are well and truly falling off.’
Ellen Sandell, Victorian Greens leader
The Albanese government plans to invest billions of dollars to turn Australia into a leading supplier of zero-emissions hydrogen, but the technology remains prohibitively expensive and is not yet viable at scale.
Origin Energy pulled out of a major hydrogen production venture in Newcastle in October, Woodside recently withdrew an application for a project in Tasmania, and Andrew Forrest, one of hydrogen’s biggest advocates, paused Fortescue’s 2030 production targets and blamed high costs and the vast amount of renewable energy needed to split hydrogen from water.
The HESC project was “blue” hydrogen, which is made from coal or gas in conjunction with carbon capture and storage technology.
Victorian Energy Minister Lily D’Ambrosio raised doubts about the project last year at an Australian Financial Review energy and climate summit, saying it was not clear the proponents would be able to adequately capture the carbon from the coal and safely sequester it.
A liquid hydrogen carrier moored at the Port of Hastings in 2022.Credit:Bloomberg
“That is a question that is yet to be answered,” she said.
The AFR reported that Kawasaki Heavy Industries’ chairman, Yoshinori Kanehana, told a separate event last year his business had been focused on winning “social licence” from Victorian communities and hoped to avoid “ideological divides”.
Friends of the Earth gas campaigner Freja Leonard said Kawasaki Heavy Industries’ decision to withdraw indicated the project wasn’t financially or practically feasible.
“It’s just an absolute nonsense to use brown coal in a climate crisis to produce hydrogen,” she said.
“Hydrogen is notoriously difficult to contain. It’s incredibly expensive to produce, and any project that expects to successfully ship hydrogen from one country to another without significant leakage is doomed to failure.”
A commercial-in-confidence report on the proposal compiled by Australia’s Department of Industry, Science and Resources in 2022 and released under freedom of information laws argued the plan was broadly supported in the Latrobe Valley.
“There are a limited number of groups within the Latrobe Valley that do not support the use of fossil fuels and are against CCS [carbon capture and storage],” the report stated. “However, the predominant sentiment in the valley is one that supports the HESC [Hydrogen Energy Supply Chain].”
Identifying challenges with getting stakeholders on board, the report noted the HESC had “revised [its] messaging” by “highlighting the carbon neutrality” the project could achieve by combining biomass with coal. This, it said, “softens the image of HESC as a coal-driven project”.
Under the plan, the cooled hydrogen would have been piped more than 150 kilometres from Gippsland to the Port of Hastings and shipped to Japan.
In January 2022, according to the confidential report, hydrogen was successfully generated under trial from brown coal and biomass.
However, it reported cost overruns and lengthy delays to the trial.
Victorian Greens leader Ellen Sandell said it was time for the project to be scrapped altogether.
“This disastrous coal project has never stacked up environmentally or economically, and I cannot believe Labor ever gave it money and support. Now the wheels are well and truly falling off.”
A spokeswoman for Energy Minister Chris Bowen stopped short of backing the project.
“The government honoured the previous government’s commitment to our Japanese partners on the HESC project,” she said. “This is a commercial decision by the Japanese consortium.”
CFE, PEMEX Could Partner for Green Hydrogen Production
CFE considers the possibility of an alliance with PEMEX to develop a green hydrogen project at one of PEMEX’s refineries. Iris Cureño, Head of the Monitoring and Evaluation Unit for Priority Projects, CFE, said in an interview with Bloomberg Línea that PEMEX, being the largest consumer of hydrogen in Mexico, presents a significant opportunity for synergy.
“It could be a synergy where CFE produces the hydrogen (for PEMEX) or only the renewable energy for its processes,” Cureño said.
Currently, Mexico consumes an estimated 220,000t of hydrogen annually, with 98% produced captively for PEMEX’s internal use. Hydrogen is essential in refineries to produce low-sulfur fuels, thus reducing environmental pollution. However, most refineries use natural gas to produce hydrogen, which results in carbon dioxide emissions. In contrast, green hydrogen, produced through electrolysis with renewable energy, is emission-free.
PEMEX’s 2023 Sustainability Plan recognizes a long-term business opportunity in national production and export of hydrogen surpluses. The plan projects potential revenues of US$4 billion by 2050 from a joint venture with CFE to produce green hydrogen.
Víctor Rodríguez Padilla, incoming Director, PEMEX, stated on Aug. 26 that the company would make a significant effort to advance renewable energy projects, expanding beyond oil, gas, and condensates. However, detailed plans have yet to be disclosed.
Cureño identified the Salina Cruz refinery, officially known as Antonio Dovalí Jaime, as a potential site for the hydrogen project. This aligns with the industrial plan to promote the Interoceanic Corridor of the Isthmus of Tehuantepec. “The most important thing is that where (hydrogen) is produced, it is consumed,” she noted.
Despite the potential, green hydrogen faces several challenges in Mexico. There is a lack of specific regulations, although the Ministry of Energy issued guidelines on green hydrogen in March 2024. Still, the regulatory framework for production, commercialization, and export of green hydrogen and its derivatives remains underdeveloped.
CFE envisions three main applications for green hydrogen: storage with hydrogen fuel cells, as a chemical for refining and production of green ammonia, and combining it with natural gas to produce electricity. However, current levelized costs remain high. To address cost challenges, CFE is collaborating with Mexican academic institutions to develop national green hydrogen technology, reducing dependency on imported equipment.
The lack of clear guidelines also halted CFE’s green hydrogen pilot in Puerto Peñasco, Sonora, which was planned for 2023. Additionally, technical challenges such as low energy efficiency, high costs, and hydrogen’s corrosive nature pose significant obstacles, according to UNAM researcher Luca Ferrari.
Pure Hydrogen expands global distribution network with GreenH2 LATAM deal
Special Report
6:55AMNovember 08, 2024
PH2 is expanding in Mexico, Latin America and Africa under the agreement with GreenH2 LATAM. Pic: Getty Images
- Pure Hydrogen signs zero emission vehicles distribution term sheets with GreenH2 LATAM
- Agreement sets framework for hydrogen vehicles and equipment in Mexico, Latin America, and Africa
- Agreement is the fourth that the company has reached in the North American region
Special Report: Pure Hydrogen has expanded the global distribution network for its zero emission vehicles and hydrogen equipment after executing a term sheet with GreenH2 LATAM.
The agreement, which has a 36-month term, sets out the framework for the non-exclusive distribution of hydrogen fuel cell (HFC) trucks, battery electric and HFC buses, hydrogen equipment (including production & refuelling infrastructure) and hydrogen fuel cell generators in Mexico, Latin America, and Africa.
It is subject to Pure Hydrogen (ASX:PH2) demonstrating it has arrangements in place to ensure the battery electric and hydrogen fuel cell electric vehicles will satisfy all applicable laws and GreenH2 LATAM ordering at least 20 vehicles within 12 months of the term sheet being signed.
Mexico City-based, GreenH2 is dedicated to transforming the energy sector in Latin America through sustainable and high-performance green hydrogen solutions.
PH2 has been progressing its strategy to grow its existing dealership network in North America with agreements signed with ETHERO Truck + Energy in October and Riverview International Trucks in July.
“We are pleased to have signed this agreement with GreenH2 LATAM, deepening our collaboration with Latin America to create future opportunities within the zero-emission commercial vehicle market,” PH2 managing director Scott Brown said.
“This is our fourth agreement in the North American region, demonstrating the quality of our diversified vehicle range and associated equipment and infrastructure. As we continue to receive significant interest across this market, we expect to secure similar agreements with strategic distribution partners in the near future.
“We’re confident with our progress so far and look forward to turning the strong interest into binding sales.”
GreenH2 chief executive Héctor Sánchez Baena said the agreement with PH2 strengthened his company’s capabilities in delivering zero-emission solutions across the region while aligning with its commitment to providing sustainable, high-performance energy options that can transform industries and communities alike.
Latin American market
Latin America is expected to leverage its abundant natural resources to generate substantial clean energy, granting it a significant role in global renewable energy production.
The region has seen substantial investments in renewable energy over the past decade, attracting ~US$19.6bn in renewable energy investments in 2021 with the lion’s share going to Brazil (US$13.3bn) and Mexico (US$3.4bn).
Interest in green hydrogen projects has also increased with announced investments totalling $40bn as of early 2024.
About 65% of the region’s electricity is already sourced from renewables and is continuing to experience rapid growth in solar and wind energy.
Highlighting this, installed solar photovoltaic capacity in Latin America and the Caribbean surpassed 45 gigawatts in 2022, reflecting a significant increase over the past decade.
For PH2, the growing renewable infrastructure provides a strong opportunity to integrate zero emission vehicles, generators and equipment into the market.
This article was developed in collaboration with Pure Hydrogen, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Fortescue Commences Construction on 50 MW Green Hydrogen Plant in Queensland
Fortescue Commences Construction on 50 MW Green Hydrogen Plant in Queenslan
- Fortescue has initiated earthworks on its $225 million (USD 150 million) 50 MW Proton Exchange Membrane (PEM) green hydrogen project near Gladstone.
- The facility aims to produce up to 8,000 tonnes of green hydrogen annually, with the first phase expected to be operational by 2025.
Fortescue has embarked on an ambitious venture to establish a significant presence in the renewable energy sector by initiating construction on a $225 million (USD 150 million) green hydrogen plant in central Queensland. The project, positioned near Gladstone, is set to become a cornerstone of Fortescue’s strategy to become a dominant force in the hydrogen and renewable energy arena. The commencement of earthworks marks the beginning of the construction phase for this groundbreaking 50 MW Proton Exchange Membrane (PEM) green hydrogen facility.
Dubbed PEM50, the project will be housed adjacent to Fortescue’s existing 2 GW electrolyser manufacturing plant within the expansive Aldoga Industrial Estate, roughly 25 kilometers west of Gladstone. The first operational phase, anticipated by 2025, involves the installation of a 30 MW electrolyser capable of producing green hydrogen for both local consumption and export markets. The subsequent phase, expected to complete by 2028, will add another 20 MW of capacity.
Once fully operational, the PEM50 project is expected to produce up to 22 tonnes of green hydrogen daily, totaling approximately 8,000 tonnes annually. This initiative is part of a broader $1.14 billion (USD 750 million) investment by Fortescue, which also includes the development of a green iron production facility at Christmas Creek in Western Australia and the Phoenix Hydrogen Hub in Arizona, USA.
Luksic Group Launches First Hydrogen-Powered Locomotive in South America
Luksic Group Launches First Hydrogen-Powered Locomotive in South America
South America’s First Hydrogen Locomotive, Powered by Chinese Fuel Cell, Set to Begin Service
Ferrocarril Antofagasta Bolivia (FCAB), a Luksic group company, introduced the first hydrogen-powered locomotive in South America, marking a significant advancement in regional sustainable transportation.
South American rail transport, the Luksic Group, through its subsidiary Ferrocarril Antofagasta Bolivia (FCAB), has successfully launched the first hydrogen-powered locomotive in Chile. This initiative is part of a broader strategy to lead the energy transition and contribute to decarbonization efforts in line with global climate change mitigation goals.
The locomotive, developed by CRRC Qishuyan Company, is tailor-made for the operational routes of FCAB. It embodies principles of standardization, modularization, serialization, and generalization to ensure adaptability and operational efficiency on the diverse and challenging terrains of FCAB’s routes.
Iván Arriagada, President of Antofagasta PLC, emphasized the innovative step, stating, “This milestone is another step on a path of innovation that is part of the hallmark of Antofagasta Minerals and FCAB. It will allow us to learn about this new fuel, which only emits water vapor and hot air, unlike fossil fuels such as diesel.” The introduction of hydrogen fuel technology is seen not only as a leap towards reducing emissions but also as a foundation for future technological adaptations as the technology matures.
David Fernández, FCAB’s general manager, highlighted the company’s commitment to exploring all available technologies to reduce greenhouse gas emissions. This commitment is part of FCAB’s broader strategy to engage with the community of Antofagasta and its clients in combating climate change.
The Minister of Economy, Nicolás Grau, and Dafne Pino Riffo, Seremi of Energy, both praised FCAB’s initiative. Riffo noted, “We are extremely happy with the presentation of the Green Hydrogen Locomotive, since this project not only introduces a unique technology in South America but also reaffirms the industry’s commitment to a cleaner future, aligned with our country’s goal of becoming carbon neutral by 2050.”
The locomotive boasts a total output of 1,000 kilowatts and features a large-capacity battery and a 35 MPa onboard hydrogen storage system. Its lightweight design, which reduces weight by about 30 tons compared to current hydrogen locomotives, enhances its efficiency and suitability for long-haul routes.
As part of the project, FCAB has secured a supply of green hydrogen for 2024 and is finalizing the necessary facilities for hydrogen storage and fueling. Staff are currently being trained in the maintenance and operation of this new technology, ensuring that FCAB’s workforce is well-prepared for this shift in fuel technology.
United H2 Limited Forms a Joint Venture with a Latin American Company to Develop Projects Across the Region
Global hydrogen holding company United H2 Limited (“UHL” or “the Company”) has signed an agreement with GreenH2 LATAM, which will focus on delivering hydrogen production and end-use technologies to the Latin American and European regions.
United H2 Limited will receive a 25% stake in GreenH2 LATAM as part of the agreement.
Key highlights:
- GreenH2 LATAM has ordered Alpha H2 hydrogen injection kits to showcase the technology in the region, with large orders expected in 2025.
- The deal will give UHL access to 70 hectares of land to develop green hydrogen plants and waste-to-energy facilities.
- On this land, UHL is currently working with GreenH2 LATAM to develop a 15MW solar farm and a 5MW hydrogen production facility in Mexico, along with further opportunities in Colombia.
- Both parties are in advanced conversations with prospective customers to secure orders for hydrogen vehicles.
- Countries involved in this partnership include Mexico, Ecuador, Panama, Peru, Chile, Colombia, the Dominican Republic, Argentina, Brazil, and Spain.
UHL says these opportunities represent the first of many in the region.
United H2 Limited’s Chief Executive Officer, Will Davidson, commented:
“Latin America forms a key part of our global hydrogen development strategy. Like Australia, the region has abundant natural resources and is laying the groundwork to become a renewable hydrogen powerhouse, and the team at GreenH2 LATAM is a trusted partner to deliver our solutions into the region.”
“We believe there is a large opportunity to partner with local governments and businesses to build a hydrogen ecosystem in the region for domestic use and export, which will deliver significant benefits to local economies.”
“United H2 Limited has a range of hydrogen end-use technologies and production methods that are ready to be commercialised in the region and create an end-to-end market. In Brazil, analysts believe that the cost of green hydrogen production will range from $2.70 to $5.60 per kilogram of hydrogen by 2030, which means hydrogen could become a cheaper, cleaner alternative for the economies in the region.”
GreenH2 LATAM’s Chief Executive Officer, Héctor Sánchez Baena, commented:
“Partnering with United H2 Limited represents a significant step forward in our mission to establish Latin America as a global leader in renewable hydrogen. This collaboration will accelerate the adoption of cutting-edge hydrogen technologies, create jobs, and drive sustainable development across the region. Together, we are building the foundation for a cleaner, more energy-independent future.”
Overview of the LATAM Market
A 2023 Deloitte report — Green Hydrogen: Energizing the Path to Net Zero — highlighted Latin America’s potential to produce cost-competitive green hydrogen in quantities exceeding domestic needs, thanks to its high renewable endowment and ample land availability.
UHL believes the shift in the region is underscored by energy trends highlighted by the Latin American Energy Organization, which reported that 59% of Latin America’s electricity in 2022 was generated from renewable sources.
Over the past decade, Latin America has experienced significant growth in renewable energy investments. In 2021, the region attracted around US$19.6 billion, with Brazil leading at US$13.3 billion, followed by Mexico with US$3.4 billion and Chile with
US$1.3 billion. Furthermore, as of early 2024, green hydrogen projects in the region have garnered considerable attention, with announced investments amounting to approximately US$40 billion.
Peru’s Minister of Energy and Mines, Rómulo Mucho, announced that companies are eyeing investments exceeding US$12.5 billion to establish green hydrogen plants in the Andean country.
The European Commission plans to offer Argentina €200 million in funding to develop its green hydrogen industry, aiming to secure a future supply of this energy carrier, while the Chilean government plans to provide subsidies of up to $10 million for the construction of new electrolyser factories or assembly plants in the country.
Additionally, the new Mexican President, Claudia Sheinbaum Pardo, has released an Energy Sovereignty for Sustainable Development framework that emphasises reducing dependency on fossil fuels and maximising the use of renewable energies to promote sustainable development and energy sovereignty.
In Mexico, 16 hydrogen-related projects have been identified, either in development (8) or announced (8). Most focus on green hydrogen, aiming to establish production plants or adoption strategies across various industries and regions, with total investments exceeding US$20 billion.
Of these projects, seven target green hydrogen production, five focus on green hydrogen usage, three on green ammonia production, and one on green methanol production.
Mexico’s Green Hydrogen Ambitions and Latin America’s Path to Decarbonization
Mexico’s Green Hydrogen Ambitions and Latin America’s Path to Decarbonization
The Latin American Post Staff Send an emailSeptember 12, 2024
1,381 5 minutes read
Acciona
As the world races towards decarbonization by 2050, Mexico and other Latin American countries are beginning to embrace clean hydrogen technologies. With international partnerships and a growing emphasis on green energy, the region is poised for transformation.
Latin America is becoming a significant player in the global push for decarbonization, with Mexico at the forefront. At a recent Clean Hydrogen Forum held in Mexico City, Japanese financial institutions such as the Japan Bank for International Cooperation (JBIC) invited Mexico to adopt hydrogen technologies to accelerate the country’s energy transition. Yuki Nakano, JBIC’s chief representative in Mexico, expressed optimism about Mexico’s future under President-elect Claudia Sheinbaum, who will assume office in October 2024. Her administration is expected to prioritize decarbonization as part of Mexico’s energy agenda for the 2024-2030 government plan.
“Her administration is looking to accelerate decarbonization, and we see potential in working together on projects that align with this vision,” Nakano said. He highlighted that JBIC already has 45 projects underway in Mexico, totaling $1.359 billion in loans, many of which are focused on sustainable energy initiatives such as green hydrogen.
Clean hydrogen, also known as green hydrogen, is produced using renewable energy sources, unlike traditional hydrogen production, which relies on fossil fuels. As a nascent industry in Mexico, clean hydrogen could become a major component of the country’s future energy mix. However, it faces significant challenges in areas such as regulation, technology, infrastructure, and a need for skilled labor.
Challenges and Opportunities in Clean Hydrogen Development
Despite the excitement surrounding the potential of clean hydrogen in Mexico, industry experts are cautious. During the forum, José Luis Sánchez, a representative from the consulting firm ERM, emphasized that the road ahead will not be easy. “As with any emerging industry, there are barriers to entry,” Sánchez explained. “There’s still much to be done to establish a regulatory framework, provide investment incentives, and advance technology for production, distribution, and storage.”
A pressing issue is a lack of a clear roadmap for hydrogen development in Mexico and the broader Latin American region. Governments and industries must collaborate to create the necessary regulatory frameworks that can drive investments and facilitate the growth of the hydrogen sector. “Training in new technologies will also be crucial,” Sánchez added, highlighting the need for skilled workers to manage and operate the complex infrastructure required for hydrogen production and distribution.
While the challenges are significant, the potential rewards are immense. The Mexican Hydrogen Association (AMH2) estimates that the green hydrogen sector could create up to three million jobs in Mexico alone. This is a crucial opportunity for a country where job creation is a top priority, especially in sustainable industries. As Mexico looks to scale up its hydrogen production capabilities, it could become a significant player in the global green hydrogen market, positioning itself as a hub for clean energy technologies.
A Regional Approach to Decarbonization
Mexico is not the only country in Latin America looking to green hydrogen as a solution for decarbonization. Across the region, several countries are exploring how this clean fuel can meet their energy needs while reducing carbon emissions.
Chile has been a leader in this space, with its ambitious plans to become the world’s leading producer of green hydrogen by 2030. With its abundant renewable energy resources, particularly solar and wind power, Chile has attracted significant investments from international companies. The country’s Atacama Desert, one of the sunniest places on Earth, is ideal for large-scale solar projects to generate the energy needed for hydrogen production.
Uruguay is also exploring green hydrogen opportunities. The country’s strong renewable energy sector, which already generates over 90% of its electricity from renewable sources, provides a solid foundation for developing hydrogen infrastructure. Uruguay’s government is working with private companies and international organizations to build a comprehensive hydrogen strategy, focusing on export potential.
Argentina, too, has expressed interest in developing its green hydrogen capabilities, particularly in the southern region of Patagonia, which has some of the world’s most favorable wind conditions. The Argentine government is partnering with global energy firms to explore hydrogen projects that could meet domestic energy needs and position the country as an exporter of green hydrogen to international markets.
These efforts are part of a broader movement across Latin America to transition away from fossil fuels and toward renewable energy. With the region’s vast natural resources, Latin America has the potential to become a global leader in green hydrogen production, contributing significantly to the worldwide goal of decarbonization by 2050.
The Global Green Hydrogen Movement
The push for green hydrogen is not limited to Latin America. Around the world, countries and companies are investing heavily in this clean energy source to meet climate targets. Several international success stories were presented as models for the region’s hydrogen future at the Clean Hydrogen Forum in Mexico.
One example is the Yuri Green Hydrogen Project in Australia, backed by the Japanese conglomerate Mitsui. The project in Western Australia aims to produce green hydrogen using renewable energy from solar and wind farms. The hydrogen will then be used for various industrial applications, including powering mining operations and reducing carbon emissions in heavy industries.
In the United States, Mitsubishi Power is responsible for several green hydrogen projects, including the Advanced Clean Energy Storage project in Utah, which will become one of the world’s most extensive hydrogen storage facilities. The project will use excess renewable energy to produce hydrogen, which can be stored and used when energy demand is high. Similar projects are underway in the United Kingdom and the Netherlands, where hydrogen is critical to Europe’s energy transition.
These international projects demonstrate the growing importance of green hydrogen in the global energy landscape. As countries work to reduce their carbon footprints, hydrogen offers a versatile and scalable solution for decarbonizing industries that are difficult to electrify, such as heavy manufacturing, transportation, and aviation.
Latin America’s Path to a Green Future
The development of green hydrogen in Latin America presents both challenges and opportunities. On the one hand, the region faces significant hurdles regarding regulatory frameworks, infrastructure, and investment. On the other hand, Latin America’s abundant renewable energy resources, particularly solar and wind power, make it an ideal location for large-scale hydrogen production.
For Mexico, the recent partnership with JBIC and the support from the Mexican Hydrogen Association are promising steps toward building a sustainable hydrogen industry. However, the road ahead will require continued collaboration between governments, private companies, and international partners. The transition to green hydrogen will not happen overnight, but with the right policies and investments, Latin America could become a global leader in this emerging industry.
Countries like Chile, Uruguay, and Argentina are already making significant progress, showing that the region has the potential to lead the way in green hydrogen production. As these projects move forward, they will help reduce carbon emissions, create jobs, and sustainably drive economic growth.
In the coming years, the success of green hydrogen in Latin America will depend on the region’s ability to overcome its challenges and seize the opportunities presented by this new energy frontier. With the global race to decarbonize heating up, Latin America is poised to play a crucial role in the world’s transition to a green future.
Also read: Didi Aims to Transform Mexico’s Electric Mobility Landscape
As the global shift toward green hydrogen accelerates, Latin America has a unique opportunity to lead this clean energy revolution. From Mexico to Chile, countries are embracing hydrogen technologies that could reshape their energy landscapes and contribute to a more sustainable future for the entire region.
Mexico – Green hydrogen plant and solar park to be built with 2,572 million dollars
December 6, 2024
Mexico – Green hydrogen plant and solar park to be built with 2,572 million dollars
The Ikal Solar company plans to develop the project “Ikal H2 Photovoltaic Park for the Production of Green Hydrogen” which will mean a total investment of 2,572.7 million dollars (mdd) in the municipality of Mina, Nuevo León (NL) in the next six years.
According to information released by the company, the total amount will be made up of $13.4 million for site repairs, $2,444.8 million for construction, $87.6 million for operation and maintenance, $26.5 million for dismantling and abandonment, as well as $350,000 for mitigation measures.
The project will have a photovoltaic solar park that will generate a total of 2,865 MW in direct current and 2,448 MW in alternating current, and will produce 124,071 tons of green hydrogen per year.
Ikal Solar explained,
The solar park will consist of 4 million 408 thousand 740 photovoltaic panels with a power of 650 Wp each, which will be installed on a surface of 1,408 hectares (ha), but the total area of the project polygon is 4,045 ha,
He explained that in addition to the power plant and the hydrogen plant, a 230 kV connection line will be built, with a length of 10.6 km, and a hydroduct for the transportation of hydrogen of just over 10.9 km that will go from the H2 plant to the valve of the existing Escobedo-Castaños gas pipeline.
Ikal Solar noted that the main objective of the project is the production of green hydrogen, with the potential to provide decentralized energy to the transport, industrial and construction sectors, which is important for the social and economic development of the region and the country.
It is worth noting that in June of this year, NL and Houston, Texas, were chosen to strengthen the hydrogen chain in both regions by participating in the H2 Twin Cities program, an initiative of the Clean Energy Ministerial supported by the United States Department of Energy.
The growth in demand for green hydrogen at the state level is expected to be driven by new uses of this gas in transport, the production of ammonia for non-conventional uses and decarbonisation in steel production, as they have the greatest potential for adoption by 2050, according to a study by the NL government.
The Ikal Solar project is long-term, as the company estimates that the site preparation and construction phase will last 6 years.
The company explained,
The development of green hydrogen production projects is part of the direction that the Mexican government is promoting for the energy transition, together with the objective of Blending hydrogen and natural gas established in the 2023-2027 Electric System Development Program of the Ministry of Energy,
READ the latest news shaping the hydrogen market at Hydrogen Central
Mexico – Green hydrogen plant and solar park to be built with 2,572 million dollars, source
State Policy Would Attract Large-Scale Hydrogen Investments in Mexico
AMH2: State Policy Would Attract Large-Scale Hydrogen Investments in Mexico
Fuel Cells Works
October 25, 2024 at 10:33 AM EDT
The establishment of a clear national policy that prioritizes hydrogen as a key element in Mexico’s energy transition, as well as the design of a solid regulatory framework, would attract large-scale investments in the hydrogen industry, reveals the study Clean Hydrogen Industrial Strategy for Mexico, prepared by the consulting firm EMR for the Mexican Association of Hydrogen and Sustainable Mobility (AMH2).
This document, presented today by Israel Hurtado, president of AMH2, identifies significant barriers and opportunities to develop a hydrogen economy in the country.
Among the main challenges, he points out the existence of few specific incentives for hydrogen projects, which limits investor interest.
During the presentation of this document, Israel Hurtado pointed out that in order to continue advancing further in the development of the hydrogen industry in Mexico, clear policies and regulations, investment in research and development, as well as a State Policy on clean hydrogen are required.
“Mexico does not have a national hydrogen strategy, it is usually convened by governments, but today we take a step forward and present this Industrial Hydrogen Strategy, from the industrial point of view, from the point of view of companies and from the point of view of the Association,” Hurtado said.
The study also mentions obstacles such as inadequate fiscal policies and the lack of established standards for the production, transport and storage of clean hydrogen.
“Addressing these challenges is crucial to ensure the safe and efficient scalability of clean hydrogen infrastructure in Mexico,” the study mentions.
However, this document highlights that our country has significant opportunities to emerge as a leader in the production of green hydrogen.
He explains that the country’s abundant renewable energy resources, especially in solar, wind, and geothermal energy, offer a great advantage, so by leveraging these resources, Mexico has the potential to produce competitive green hydrogen, both for domestic consumption and for export.
In addition, it notes, existing natural gas infrastructure, such as pipelines and storage facilities, can be repurposed for hydrogen transportation and distribution, reducing upfront investment costs.
The study also highlights the potential of hydrogen to play a key role in industrial decarbonization, particularly in sectors such as oil refining, cement production, and steelmaking.
Integrating hydrogen into these high-emission industries would not only reduce Mexico’s carbon footprint, but would also increase energy efficiency and promote energy security by diversifying the country’s energy matrix.
The Industrial Hydrogen Strategy for Mexico highlights that the development of a hydrogen economy in Mexico generates important job opportunities that cover the entire hydrogen value chain, from production and logistics, to research and development of new technologies.
In addition, it states that Mexico’s strategic location as an exporter of green hydrogen to North America and Europe positions it as a crucial player in the global hydrogen market.
The document stresses that in order to capitalise on the opportunities that exist in the hydrogen industry, it is necessary to establish a National Hydrogen Policy, as it is essential to have a clear and coherent regulatory framework to guide investments, standardise procedures and ensure the safe development of projects.
Likewise, it is necessary to develop incentives and regulations, for which the Government must implement fiscal incentives, such as tax exemptions, incentives and subsidies, to encourage private investment in hydrogen projects.
In addition, it is vital to develop robust safety standards and technical standards to ensure the long-term success of the industry.
Another factor that the study points out as a priority is to promote public-private partnerships, since collaborations between government and industry actors are necessary to promote innovation, technological advances and infrastructure development.
It also mentions that Mexico must continue to build partnerships with countries such as Denmark, to benefit from knowledge exchange, technology transfer and financing opportunities. This also positions Mexico as a key player in the global green hydrogen supply chain.
The document highlights as a great area of opportunity the technical training required to design, implement and maintain hydrogen systems, and to have an adequate and modernized infrastructure for the storage and transport of this energy vector.
“Mexico has a high potential for the production of green hydrogen, so currently 16 projects in different stages of development are opening up space, driven by the need to reduce carbon emissions and with investments estimated at 20 billion dollars.
“In addition, there are 20 pilot project initiatives in various regions of the country for the production, consumption and export of clean hydrogen and its derivatives for different uses and applications, such as heavy transport and industrial decarbonization,” the study highlights.
The AMH2 estimates that the clean hydrogen industry could generate investments of 60 billion dollars over the next 20 years.Also present during the event were Deputy César Rendón; José Luis Sánchez, ERM consultant; Dieter Femfert, vice president of the AMH2; Renata Herrera, secretary of the AMH2 Council; Mads Knudsen, from the Embassy of Denmark in Mexico; and Manuel Tamayo, treasurer of the AMH2.
New Brazil-U.S. Partnership for the Energy Transition
Establishing a Climate-Forward Clean Energy Industrial Partnership
Brazil and the United States share the goal of creating more competitive, clean, fair, and resilient economies by promoting the clean energy transition in a way that fosters economic growth and the generation of high-quality jobs, while reducing emissions and keeping our 1.5°C goals within reach, consistent with the Paris Agreement. Along with other domestic priorities, these objectives align with the following public policy agendas in both countries:
- Brazil has recently launched its policy of development called Nova Indústria that seeks to strengthen Brazil’s industrial capacity and supply chains, including in bioeconomy decarbonization and energy security. Brazil also has, among other policies, the Ecological Transformation Program, the Fuels of the Future Program, the National Plan for Energy Transitions (PLANTE), and the National Hydrogen Program (PNH2).
- The United States is implementing ambitious pieces of legislation, including the Bipartisan Infrastructure Law and the Inflation Reduction Act, which contain significant incentives to diversify clean energy supply chains and accelerate the growth of both clean power generation and clean energy technology manufacturing, including clean hydrogen and sustainable aviation fuel.
Brazil and the United States have immense potential to lead the global energy transition on some of its most promising fronts. This new partnership presents a strategic opportunity to strengthen bilateral cooperation on clean industrial development, leveraging complementarities across both our public and private sectors. The two sides announce their intent, in particular, to focus coordination across three pillars:
- Clean energy production and deployment: accelerate and expand clean energy production and deployment, particularly to harness Brazil and the United States’ vast clean and renewable resources, including wind, solar, hydropower, and potentially, other biocapacity resources. This would accelerate efforts to decarbonize the power, transportation, and industrial sectors.
- Clean energy technology supply chain development: increase cooperation on innovation, workforce training, and project development for clean technologies, including efforts to manufacture solar and wind components, long-duration storage batteries, and zero and low-emission vehicles and components; produce clean hydrogen; increase production, processing, and recycling of critical minerals; and scale carbon management technologies.
- Green industrialization: advance efforts to decarbonize manufacturing and industrial sectors writ large to attract investments from global companies, and drive closer coordination across Brazilian and U.S. private sector partners to achieve net-zero emissions in their supply chains, as well as position our companies to effectively compete in a world where global trade will increasingly account for embedded emissions.
Brazil and the United States, through a leader-level partnership around these three priorities, intend to align incentives and mobilize public, private, and multilateral development bank (MDB) financing to generate a myriad of shared benefits, such as creating local clean energy jobs that empower communities and workers; integrating and expanding clean energy supply chains; advancing clean energy technological development; and stimulating new investments, including in the areas of climate resilience and combatting deforestation. The partnership intends to serve as a framework to elevate and coordinate the strong existing collaboration between Brazilian and U.S. institutions, including the U.S.-Brazil Energy Forum, the Fazenda-Treasury Climate Partnership, the U.S.-Brazil Climate and Clean Technology Plan, the U.S.-Brazil CEO Forum, the U.S.-Brazil Clean Energy Industry Dialogue, the U.S.-Brazil Climate Change Working Group, and the U.S.-Brazil Strategic Minerals Dialogue.
Through this partnership, announced by Presidents Lula and Biden, Brazil and the United States intend to mobilize all relevant government agencies in our countries to shape and accelerate just and inclusive energy transitions and provide the needed signals for public and private sector stakeholders to fully participate in this effort.
Link: https://br.usembassy.gov/fact-sheet-new-brazil-u-s-partnership-for-the-energy-transition/
Brazil Should Take Hydrogen more Seriously, Says Energy Agency Director
Of the US$2 trillion being invested worldwide in clean energy in 2024, 85% is concentrated in developed countries. Only 15% is in the rest of the world, which has 65% of the global population.
This concentration in wealthy countries is highlighted by data provided by the International Energy Agency and is seen as the biggest issue by the agency’s executive director, Fatih Birol, in energy sector discussions.
He sees a need to accelerate projects in Brazil, particularly in green hydrogen, warning of the risk of two worlds being created with separate energy systems—one clean and the other dirty—but both suffering the consequences of global warming.
One of the most promising technologies for global decarbonization is green hydrogen, in which Brazil could have a major advantage due to its abundance of clean energy. Birol states that the country needs to speed up investments in this area.
The warning comes amid increasing investments of this kind elsewhere.
Lula enacts Fuel of the Future law: “Brazil will drive the world’s largest energy revolution
Regarded as a milestone for the industry, the regulation establishes national programs for green diesel and sustainable aviation fuel, while also providing incentives for biomethane, among other initiatives.
Addressing an audience that included representatives from the energy sector, agro-industry, aviation, and key stakeholders in the energy transition process, President Luiz Inácio Lula da Silva declared with conviction: “Brazil will lead the world’s largest energy revolution.”
The statement was delivered this Tuesday, October 8, at the Brasilia Air Base, during the enacting ceremony of Bill of Law No. 528/2020, which institutes the National Program for Sustainable Fuel for Aviation, National Program for Green Diesel, and the National Program for the Decarbonization of Natural Gas Producers and Importers and for the Promotion of Biogas.
“Which country can rival Brazil in wind and solar energy? Which country can compete with us in hydric energy? Which country can compete in green hydrogen? All we need is the desire to be big. The desire to win. To have self-esteem.” The new legislation presents a series of initiatives to promote sustainable, low-carbon mobility and consolidate Brazil’s position as a leader in the global energy transition.
“Brazil will get a head start because you, the entrepreneurs, have the capacity to produce, to research. Enacting this law demonstrates that none of us have the right to continue disbelieving that this country can be a large economy. What it needs is leaders who are up to the needs and aspirations of the people,” the president added.
Participants of the event included Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin; the Minister of Mines and Energy, Alexandre Silveira; heads of other ministries, the President of the Chamber of Deputies, Arthur Lira, as well as parliamentarians and entrepreneurs.
“We are planting a new seed. The seed of the fuel of the future. It will generate over BRL 260 billion in investments in agribusiness and the biofuels chain. The fuel of the future places Brazil at the forefront of the new economy, the green economy,” summarized Alexandre Silveira.
“An agenda like today’s is an agenda of the State, of the country, of development. I do not doubt that they will become the country’s greatest assets, as a significant milestone is set today,” stated Arthur Lira.
Casa dos Ventos, Atlas Agro explore green hydrogen for fertilizer use
Renewable energy firm to provide wind or solar power for green hydrogen, a key input for ammonia in nitrogen-based fertilizers
Casa dos Ventos and Atlas Agro have signed a memorandum of understanding to explore an optimal model for supplying green hydrogen to produce sustainable nitrogen fertilizer. The partnership will evaluate the technical and financial feasibility of Casa dos Ventos providing renewable energy to Atlas Agro’s planned plant in Uberaba, Minas Gerais.
The study will cover options such as wind or solar photovoltaic energy—or a combination of both—to generate green hydrogen, alongside considerations for the business model, engineering, investment, and location of the electricity-generating plant. Hydrogen is a primary feedstock for producing ammonia, a key component in nitrogen fertilizers.
Brazil currently imports 95% of its fertilizer needs from geopolitically sensitive regions like Iran, Russia, and Ukraine, where it’s often produced with “grey” hydrogen derived from coal and natural gas. Brazilian agribusiness is the world’s largest fertilizer importer, bringing in 41 million tonnes last year.
Atlas Agro’s plans include constructing a facility in Uberaba to produce 530,000 tonnes of sustainable fertilizer annually using green hydrogen created through electrolysis, which splits water into hydrogen and oxygen using renewable electricity.
Set to begin operations in 2028, the Uberaba facility will serve the Goiás, Minas Gerais, and northern São Paulo markets, where fertilizer demand reaches around 3 million tonnes per year.
Knut Karlsen, co-founder of Atlas Agro and president of Atlas Agro Brasil, estimates the Uberaba plant will require roughly $1 billion in investment, supporting domestic reindustrialization efforts. The Rio Grande River will supply water for green hydrogen production.
Mr. Karlsen emphasizes that while the end product remains chemically identical to that produced with natural gas, it is entirely green.
Chile leads Latin American push to clean hydrogen
- Chile, with abundant natural resources and a thriving economy, is leading the charge for clean hydrogen in Latin America where strategies toward the developing industry vary.
October 22 – Chile’s renewable energy resources could supply 70 times the country’s current electricity generation capacity and produce up to 160 million tons (Mt) per year of clean hydrogen by 2050, according to a National Green Hydrogen Strategy that was fully adopted by President Gabriel Boric’s government after he was elected in 2022.
The national plan raises electrolyzer capacity, either operating or under development, to 5 GW by 2025 and 25 GW by 2030, and sets a price for clean hydrogen at just $0.8-$1.1 per kilo by the end of this decade.
Chile accounts for around half the potential low-emission hydrogen production announced in the region, according to the International Energy Agency (IEA).
The plan is backed by significant support to finance, opens new tab and promote investment in clean hydrogen, including a 225-million-euro ($245-million) fund from the European Investment Bank (EIB) and KfW Development Bank, a $150 million loan from the World Bank, and a $400 million loan from the Inter-American Development Bank (IDB).
“The government of Chile wanted to send a message that they understood they have something unique on their hands and it is this ability to create enormous amounts of power in relatively uninhabited vast lands for clean hydrogen production and for export,” says Christiaan Gischler Blanco, Lead Energy Specialist at IDB.
“By producing this new fuel that not only can be produced in the north and south of Chile …. you can use electrons to split the molecule of water into hydrogen and oxygen and then the hydrogen produced can be exported in the form of clean ammonia and clean methanol. That is the game changer.”
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Chile’s development agency Corfo has injected $50 million of public funds into six hydrogen projects in order to reach a cumulative electrolyzer, opens new tab capacity of 396 MW by 2025.
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These projects will be run by Enel Green Power, Air Liquide, Engie, GNL Quintero, CAP, and Linde, and are expected to attract investments of $1 billion to produce more than 45,000 tons a year of clean hydrogen, according to the Green Hydrogen Organization.
MAP: Clean hydrogen projects planned by 2030, power capacity in 2022
Source: International Energy Agency (IEA) analysis based on IEA Hydrogen Production Projects Database (October 2024); Open infra map (2023), Electricity grids; Global Energy Monitor (2022), Global renewable power tracker. Purchase Licensing Rights, opens new tab
Different pathways
Latin America generates around 60% of its electricity from renewable sources, double the global average, mainly due to hydropower which accounts for 40% of power generation.
In the short and medium term, countries in Latin America will be net exporters of clean hydrogen, local decarbonizers, or focused players, or a combination of these, according to the World Economic Forum and Accenture report ‘Accelerating the Clean Hydrogen Economy in Latin America’.
The region could fulfil 25% to 33% of global demand by 2030, followed by Australia (22%-31%), and Africa (9%-13%), says Jörgen Sandström, Head, Transforming Industrial Ecosystems, Centre for Energy and Materials, World Economic Forum.
“While the first pathway is setting up their capabilities to fulfil mainly Europe’s demand, the other two pathways rely on local demand to scale and grow, setting the foundations to then become exporters in the long run,” Sandström says.
“Therefore, the expectation is for those that follow the local decarbonizer and focused player to develop the industry mainly driven on domestic demand.”
Hydrogen demand in the region reached 4 Mt in 2023, according to the IEA’s ‘Global Hydrogen Review 2024’, mostly for oil refining and chemicals manufacturing, while almost all of that (90%) is produced using imported natural gas.
Meanwhile, 80% of nitrogen-based fertilizer demand is met by imports, the IEA noted.
Opportunities within the clean hydrogen market differ by country.
Mexico and Colombia can leverage large existing hydrogen demand from oil refineries, Brazil’s iron ore , opens new tabindustry (accounting for 90% of Latin America and Caribbean iron ore trade) could develop hydrogen-fuelled direct reduced iron (DRI), while Chile could use hydrogen to decarbonize its mining sector as well as export it elsewhere.
Panama’s shipping, opens new tab industry could become a hub for low-emissions shipping fuels and is already targeting 5% of bunkering from hydrogen derivatives by 2030, the IEA said.
Based on announced projects, Latin America and the Caribbean (LAC) could produce 7 million tons of low-emission hydrogen by 2030 but, according to the IEA, only about 0.1% of those projects are in operation, under construction, or reached a final investment decision (FID).
“Action is required in the short term to unlock LAC’s potential, balancing domestic demand with export ambitions,” the IEA said in its report.
Hydrogen hurdles
Latin America faces similar challenges to building its clean hydrogen economy as seen elsewhere, including low investment and low demand, potential distortions from the U.S.’ massive Inflation Reduction Act (IRA), and poor coordination amongst regional producers.
The U.S.’ inflation act, opens new tab promises billions in production and investment tax credits for clean hydrogen projects, allocated in line with the levels of emissions produced per kilo of hydrogen. However, the credits have been delayed while the government, faced with an upcoming election, struggles to put a final stamp on how it defines clean hydrogen.
Many hydrogen projects in Latin America face uncertainty as they await the inflation act rules to be finalized.
“All of this [inflation act] money can pose a problem for Latin America. If the market in the United States is being heavily subsidized by the government, that means that it will be harder for many of these countries to become competitive,” says Juliana Rubio Associate Director of the Americas Program for Center for Strategic and International Studies (CSIS).
Hydrogen exporters will need to be able to show that the hydrogen is clean as defined by the destination countries. For example, products destined for Europe will need to conform with European Union regulations. While a coordinated effort across Latin America would help build a unified market from scratch, regional differences make that unlikely.
The region known as Latin America consists of 33 countries spread across North, Central, South America and the Caribbean, with Spanish, Portuguese, English and hundreds of indigenous languages and local dialects spoken.
“A problem that Latin America has is the lack of cohesion. No one country is big enough to produce hydrogen, especially green hydrogen, at a scale where it is profitable,” says Rubio.
“There needs to be some sort of regional cooperation for this market to really take off.”
Link: https://www.reuters.com/business/energy/chile-leads-latin-american-push-clean-hydrogen-2024-10-22/
Chile: EFE and MTT Sign Second Agreement for the Implementation of Hydrogen in Railway Systems
The initiative seeks to advance sustainable mobility through the use of clean energy, promoting green hydrogen as an alternative fuel for national rail transport.
EFE Trenes de Chile, together with the Ministry of Transport and Telecommunications, the National Hydrogen Institute (INH2) and the company Hydrox, have signed a second agreement for the development of a hydrogen propulsion system in electric trains. This agreement, aligned with Chile’s sustainability objectives, aims to reduce CO2 emissions and promote the use of clean energy in rail transport.
The agreement provides for the development and testing of a hydrogen-powered train prototype, using a UT model that was decommissioned in 2021 and that operated in the Biotren service. This prototype will be worked on at the San Eugenio Maestranza and will undergo tests on routes defined by EFE, with the aim of evaluating its operational viability for future expansions of the project.
Regarding this initiative, the Minister of Transport and Telecommunications, Juan Carlos Muñoz, said that “as a Government we have a strong commitment to environmental care, because we are aware of the global call to care for our planet and from Chile, we want to contribute to this task. In this context, one of the efforts is to reduce the carbon footprint of our transport system and that is why we are exploring the incorporation of new energy sources, such as hydrogen in other modes of transport for both passengers and cargo.”
“This is why, with this agreement, we are laying the foundations for a very important step towards the future. One that will lay the foundations for a railway system that is powered by this clean energy. All important changes require a first step and we believe that this agreement is the starting point for that path.”
The project, in terms of financing, explores strategic alliances with national institutions and international actors. This agreement will not only allow for the construction, but also for the eventual implementation of this new technology in a service.
“We are moving forward decisively with our Sustainability Strategy for 2035. This agreement reinforces our role as key players in the fight against climate change, in direct collaboration with SDG 13 “Climate Action”. We are convinced that these types of initiatives are essential to ensure efficient, safe and environmentally friendly mobility, marking a milestone in our roadmap towards cleaner and more environmentally friendly transport,” said José Solorza, General Manager of EFE Trenes de Chile.
This agreement is part of EFE’s Carbon Management Strategy, which aims to achieve carbon neutrality by 2035. Using hydrogen as an energy source for trains will not only reduce CO2 emissions, but will also contribute to improving energy efficiency and lowering operating costs. The announcement coincides with the International Day against Climate Change, celebrated on October 24, reinforcing the commitment to sustainability and technological innovation.
At the same time, within the framework of the company’s Development Strategy, it is preparing with new technologies for the upcoming rolling stock renewals and the challenges of growing passenger and cargo services in the different regions of the country.
The development of this project marks an important milestone in Chile’s transition towards a cleaner, more efficient and sustainable rail transport model.
Hydrogen Europe and H2Chile agree to strengthen industry cooperation on clean hydrogen deployment and trade
Hydrogen Europe and H2Chile have signed a Memorandum of Understanding (MoU) during the European Hydrogen Week, under the patronage of the Chilean Embassy to the European Union and the European Commission, and in presence of industry stakeholders from both the European Union and Chile. The MoU confirms the commitment between the two associations to work together for the deployment of the hydrogen sector and to collaborate on the development of trade opportunities across both regions. With this initiative the two organisations expect to grow the long-standing cooperation between the European Commission and the Government of Chile and strengthen economic links in the hydrogen sector.
The partnership will facilitate industry-to-industry and public-private exchanges between the European Union and Chile, with a view to strengthening cooperation on regulatory frameworks, trade and financing, and to exchange best practices on R&I, skills and value creation among others. While key COP negotiations are taking place on the future of climate financing, the collaboration also seeks to advance the role of hydrogen for decarbonisation in global climate and energy negotiations.
Jorgo Chatzimarkakis, CEO of Hydrogen Europe stated: “Today’s MoU is a tangible contribution of the hydrogen industry to the deployment of clean energy technologies and value chains that are becoming increasingly important in the EU and Chile and are opening new opportunities for investments and trades. I am convinced that this cooperation will help address the challenges the sector, thus strengthening our economic ties and promoting clean hydrogen trade globally.”
Marcos Kulka, Executive Director of H2Chile said: “Europe is a leading market in the move toward climate solutions, especially in hydrogen and low- or zero-emission derivatives. With this agreement, H2 Chile continues to drive the development of this key industry to reduce hard-to-abate emissions. Hydrogen Europe is an important player on the continent for collaboration on issues like regulation, standards, promoting international demand, investments, and early-stage financing. Chile is a key country for global decarbonization and a competitive supplier of ammonia with a green value chain.”
Felix Fernandez-Shaw, LAC Director, European Commission mentionned: “Chile is leading Latin America’s hydrogen development, paving the way for the decarbonization and green industrialization of economies across the region. We are happy to support this MoU to strengthen hydrogen business cooperation between Chile and the European Union and accelerate the hydrogen market from start up to scale up”
HE Gloria Navarrete, Ambassador Extraordinary and Plenipotentiary, Head of the Mission of the Republic of Chile to the European Union concluded: “Today’s signature of the MoU between Hydrogen Europe and H2 Chile is an important and timely milestone in the long-term road to developing the hydrogen industry in Chile and Europe. Through concrete actions, it shows the spirit that sustains the bilateral relationship: collaboration, exchange of good practices, and working together in the hydrogen sector for a sustainable future. This vision was also materialized in the new Advanced Framework Agreement (AFA) Chile-EU, which contains a dedicated chapter on Energy and Raw Materials that aims to support Chile in developing our green economy, particularly concerning renewable energy and hydrogen.”
***
Hydrogen Europe is the European association representing the interest of the hydrogen industry and its stakeholders and promoting hydrogen as an enabler of a zero-emission society. With 600+ members, including 40+ EU regions and 30+ national associations, we encompass the entire value chain of the European hydrogen and fuel cell ecosystem. Our vision is to propel global carbon neutrality by accelerating European hydrogen industry.
The Chilean Hydrogen Association (H2 Chile) is a non-profit trade organization that aims to promote zero-emissions development by accelerating the adoption of renewable hydrogen and its derivatives in our society. It fosters collaboration between public, private, and academic entities interested in helping make this new industry a reality in the country. The association has become a platform to drive the energy transition and help position Chile as a leader in the production and use of hydrogen for industrial, commercial, and mobility applications.
Currently, H2 Chile has about 140 members (40 professionals and 100 companies) from the public, private, and academic sectors, covering the entire value chain of renewable hydrogen in the country.
Hydrogen Trains: The Future of Sustainable Transportation in Chile
Chile plans to develop and implement hydrogen trains by signing a crucial agreement. This was reported by the railway transport news portal Railway Supply.
The project involves EFE Trenes de Chile, the Ministry of Transport and Telecommunications, the National Hydrogen Institute (INH2), and Hydrox. These organizations aim to work together to design and test a hydrogen power system that will help move the country toward a sustainable future.
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Under the agreement, specialists will develop and test a prototype train powered by hydrogen fuel. To achieve this, they plan to modify an existing UT train that previously operated on the Biotran network and was retired in 2021. The work will take place at the San Eugenio Maestranza station, where they will complete the prototype and conduct necessary tests on routes designated by EFE. EFE Trenes de Chile’s general director, Jose Solorza, emphasized the importance of exploring new energy sources for transport. He stated that hydrogen could serve as a promising fuel for both passenger and freight transportation. His statement underlines Chile’s commitment to sustainable transportation and a future driven by clean technology.
Global Experience with Hydrogen Trains
Hydrogen trains are actively being adopted worldwide, underscoring their long-term potential. In Europe, the United States, China, and South Korea, trains powered by hydrogen fuel are either in operation or undergoing trials, highlighting global interest in this technology. Saudi Arabia recently began testing the Alstom hydrogen train, and India plans to trial a local hydrogen train in Delhi on the Northern Railway in December 2024.
Challenges and Prospects for Hydrogen Trains
Europe and China have gained significant experience with hydrogen technology but also uncovered some challenges. During operations, it has become clear that deploying hydrogen trains requires thorough research and preparation. This applies to assessing the suitability of hydrogen-powered trains in areas with alternative traction options, as well as meeting high standards for infrastructure and the quality of fuel cells supplied.
Link: https://www.railway.supply/en/hydrogen-trains-the-future-of-sustainable-transportation-in-chile/
Bahía Quintero Green Hydrogen Project is approved by the Valparaíso Environmental Assessment Commission – Chile
Bahía Quintero Green Hydrogen Project is approved by the Valparaíso Environmental Assessment Commission – Chile
The Bahía Quintero Green Hydrogen Project, developed by GNL Quintero and Acciona Energía, was unanimously approved by the Environmental Assessment Commission (COEVA) of Valparaíso.
The Project involves the construction and operation of a green hydrogen plant (H2V), which will have a nominal power of 10 MW. The Subir ativa initiative seeks to contribute to the growth and development of this energy source for industrial use in Chile.
The green hydrogen produced will be supplied to future customers, both in the industrial district of Quintero-Puchuncaví Bay and to other companies located in the central part of the country, thus allowing the progressive transformation of production processes and contributing to the transition towards cleaner energies.
The plant, which will be installed within the GNL Quintero premises, has the capacity to produce 1,600 tons of hydrogen per year.
The Project contributes to the Government’s National Green Hydrogen Strategy, introducing this fuel of the future from Quintero Bay to develop the domestic market, contributing to the country’s energy transition and decarbonization process.
In parallel with the processing of the environmental permit, the company has been advancing in the development of the Project’s engineering, in the selection process of the electrolyser and the commercial process with the end users of hydrogen, one of the most important parts of the project. If the investment conditions are met, it is expected that the construction and technical tests will be carried out during the next year.
The Project also represents collaborative work with the public sector, as Corfo selected this initiative in 2021 to receive a subsidy of 5.7 million dollars that supports the development of green hydrogen in Chile. Along the same lines, in 2023, the project was certified under the R&D Law, which generates a tax incentive for investments in research and development.
H2V is generated using an electrolysis system, which separates water molecules into hydrogen (H2) and oxygen (O2) gas molecules through a continuous electric current applied by electrodes, without generating CO2 emissions or pollution. This process requires demineralized water and electricity. The water will come from the existing sanitary network at the Quintero LNG Terminal facilities, while the electricity will come from a certified renewable energy supply contract through connection to the National Electric System.
READ the latest news shaping the hydrogen market at Hydrogen Central
Bahía Quintero Green Hydrogen Project is approved by the Valparaíso Environmental Assessment Commission – Chile, source
It’s the most futuristic train in history: The world rejects it because of who made him
A hydrogen-powered train in Chile is set to begin operations on the Antofagasta-Bolivia railway network. Earlier this year, operator FCAB received a 1MW fuel cell-powered train from the Chinese manufacturer CRRC Qishuyan. The locomotive will be deployed for the first time from FCAB’s facilities in Antofagasta, traveling to the city’s port. The project’s use of Chinese manufacturing may increase tensions between the U.S. and China as the two world powers compete for global presence and the renewable energy market is included in this.
Hydrogen power- making waves in the transport industry
The new train will operate using hydrogen fuel cell technology. Hydrogen fuel cell technology works by converting chemical energy from hydrogen into electricity through an electrochemical process rather than through combustion as is the case for traditional internal combustion engines which the majority of locomotives use.
In a hydrogen fuel cell, hydrogen gas is fed into the anode side of the cell while oxygen is supplied to the cathode. At the anode, hydrogen molecules are split into protons and electrons. The electrons flow through an external circuit to create an electric current that can power electric motors, vehicles, or other devices. Water is released as the only byproduct, making hydrogen fuel cells a clean source of energy with zero harmful emissions provided the hydrogen used in the fuel cell was sources from renewable energy.
New improvement to hydrogen trains
FCAB has said that the new train will be about 30 tonnes lighter than previous hydrogen fuel cell powered trains. The train will also include a 35MPa onboard hydrogen system and a high-capacity battery. “This milestone is another step in a path of innovation that is part of the hallmark of Antofagasta Minerals and FCAB,” explained Iván Arriagada, the Executive President of Antofagasta plc, which owns FCAB, “it will allow us to learn about this new fuel. We want to study possible uses of this fuel in the future when the technology is more mature.”
Currently, there are several pilot projects of hydrogen fuel cell electric trains across the globe, especially in developed countries, including one commercialized and permanent route in Germany. While they are not as prevalent as hydrogen cars, hydrogen fuel cell technology is becoming a promising alternative in the locomotive industry.
Hydrogen trains to aid Chile’s 2050 carbon goals
Dafne Pino Riffo, Regional Minister Secretary of Energy in Chile stated, “This project promoted by FCAB not only introduces a unique technology in South America but also reaffirms the industry’s commitment to a cleaner future, aligned with our country’s goal of becoming carbon neutral by 2050.” In 2020, Chile set their 2050 carbon-neutral target making them the first Latin-American country to establish a law specifically centered on combating climate change.
Additionally, the new hydrogen trains are intended to use hydrogen only from green energy sources. This ensures that the carbon-neutral promise the trains deliver preserves its authenticity. FCAB is now in the final stages of orchestrating the necessary facilities as well as training their staff to safely maintain and operate the train.
Chile has set interim goals to reach their 2050 carbon-neutral goal. This includes reducing emissions by 25% by 2030 compared to 2007 levels. The country also aims to phase out coal as a source of electricity by 2040 and is making significant investments in renewable energy, such as wind, solar, and hydropower. These sources already account for a growing portion of their energy mix. Chile is focusing on transitioning to a green economy by implementing policies that support renewable energy development, improving energy efficiency, and promoting sustainable practices across various sectors, including transportation, agriculture, and industry.
Spotlight on public transport amidst climate crisis
Prioritizing renewable solutions in public transport is also key to building a more resilient and energy-efficient infrastructure, reducing dependency on fossil fuels, and supporting the transition to a low-carbon economy. In order to meet climate targets, governments should focus on scaling up investments in renewable public transport, enhancing connectivity, and ensuring that these services are affordable and accessible to all to make sustainable transportation an integral part of future cities.
Link: https://www.ecoticias.com/en/china-hydrogen-train-history-futuristic/8976/
Chile losing global green hydrogen head-start, companies say
SANTIAGO, Nov 7 (Reuters) – Industry insiders are worried Chile is falling behind the global green hydrogen race despite having a head-start due to its strong renewable energy matrix and geographic advantage to export to Asian markets.
In a panel about energy transition in Santiago, companies betting billions on green hydrogen in the Andean nation said lengthy permitting and a lack of infrastructure, mainly ports and energy transmission, are holding the industry back while other countries are charging ahead.
“We had a three, four year head start compared to the rest of the world in implementing these projects, but today that’s down to months,” said Mario Marchese, project director for HNH Energy an $11 billion green hydrogen project in Chile’s Patagonia.
“We’re in a race to see who gets first to markets first,” Marchese said. “And every day that window is closing and we’re losing that war.”
HNH Energy, backed by AustriaEnergy, Okowind and Copenhagen Infrastructure Partners, aims to produce 1.3 megatons of ammonia and 270,000 tons of hydrogen a year with a 1.4 Gigawatt wind farm. It’s one of the largest green hydrogen projects in the world and the largest investment to go through Chile’s environmental permitting process.
“We’ve spent four years preparing the environmental permit, we’ve spent dozens of millions of dollars to get to this stage and we still have a long road to go,” Marchese said, adding that the permitting has been the most challenging part of the project and they hope to sign construction contracts in the first half of 2027.
Marchese noted that Australia is racing to reach Asian markets first and Brazil is also emerging as a global competitor.
Katherine Orozco, project development manager for EDF Chile, a subsidiary of France’s EDF that has a $2 billion investment plan, said Chile’s abundance of solar energy in its northern desert regions and wind energy in the Patagonian south, along with coastal proximity, gave it a big advantage over other countries in Latin America.
“When it comes to hydrogen, 60 or 70 percent of the cost is from electrical costs from renewable,” Orozco said. “That’s what should give us an advantage against the rest of the world, so we shouldn’t lose that.”
Orozco said that one of the biggest challenges she sees is a lack of electrical transmission lines and ports to export green hydrogen. Brazil, she noted, has already started developing ports, giving it an advantage over Chile.
Both Orozco and Marchese noted that the government is aiding in public-private investment and two bills aimed at speeding up permits, but both have been delayed in congress.
Latin America Gears up for Clean Hydrogen Boom but the Road Is Not Smooth
Latin America gears up for clean hydrogen boom but the road is not smooth Latin America’s wealth of hydroelectricity and other renewable energy resources could make the region a major producer of clean hydrogen as the world seeks alternatives to fossil fuels to fight the climate crisis, but some big hurdles lie in the way.
Government leaders expect a major boon for the region from clean hydrogen, also known as green hydrogen, produced using electricity from renewable sources that do not emit carbon.
For example Colombia’s government, led by leftist President Gustavo Petro, has made weaning the nation off oil and coal in favor of renewable energy a major policy goal. And billions of dollars in funding are on offer from multilateral lenders.
Yet industry groups and analysts said still more investment is needed. Other major hurdles they cited included a lack of customers as local businesses shy away from signing deals that producers need to secure financing. This has exacerbated a dearth of local production.
Advocates promote clean hydrogen as fuel for everything from trucks to steel blast furnaces and as input for green fertilizers. Yet critics say its production still requires excessive energy inputs.
Latin American countries are poised to benefit as European and Asian countries need to bite the bullet and start signing contracts for “substantial quantities” of hydrogen, Monica Gasca, executive director of the Colombian Hydrogen Association, told Reuters. Yet she and other industry experts said production will probably not ramp up much without deals in place.
“We are very much in a chicken and egg scenario when it comes to green hydrogen,” said Fernando Schaich, head of green hydrogen at Uruguay-based energy service company SEG Ingenieria.
Latin American industries themselves could be important hydrogen clients, Schaich said. “All projects will really start when the shipping, airline and heavy industries sign deals and make commitments.”
Pricing the fuel economically enough to attract customers depends on cheap, plentiful and reliable supplies of renewable energy.
But in Colombia, dozens of onshore wind projects planned for the La Guajira peninsula have been canceled or long-delayed because Indigenous groups have not approved construction.
“If Colombia doesn’t really make an effort to facilitate the dialogues between the communities and the developers, mainly in La Guajira, then Colombia will be at least 33% less competitive than the rest of Latin America,” said Inter-American Development Bank (IDB) lead energy specialist, Christiaan Gischler.
Clean hydrogen is currently much more expensive – north of $10 per kilogram in some places – than more contaminating hydrogen, said Luisa Palacios, a senior research scholar at Columbia University’s Center on Global Energy Policy.
Gray hydrogen generated from fossil fuels currently costs as little as $1 to $3 per kilogram, Palacios added.
But Gischler said re-purposing existing assets such as pipelines or building shared infrastructure could push clean hydrogen costs in Latin America down to $1.50 to $2.50 per kilogram.
BUYERS AND REGULATORS
A World Economic Forum report published in August recorded some $6.1 billion as earmarked for renewable investments – including clean hydrogen – across the region by multilateral lenders and funds, as well as foreign and regional governments, in addition to a feasibility study for a $4 billion clean hydrogen plant in Uruguay.
That is a tiny fraction of the $100 billion to $300 billion investment the IDB’s Maria Florencia Attademo-Hirt told a roundtable discussion that the industry would need in the region by 2030.
There are about 65 clean hydrogen projects in Latin America, mostly in the early development stages, according to the Wilson Center think tank that hosted the roundtable.
As of the end of 2023 Colombia had some 28 projects, according to Gasca, including an industrial-scale project at state-run energy company Ecopetrol’s refinery in the city of Cartagena, set to come online in 2026.
Brazil’s Petrobras is also eyeing clean hydrogen to replace gray hydrogen in its own operations, according to the company’s energy transition chief, Mauricio Tolmasquim.
State-controlled Petrobras plans to build two green hydrogen plants, and is holding talks with potential customers, Tolmasquim has said, adding it is still establishing prices.
Chile has identified 12 regulations relevant to green hydrogen development that must be updated, said Marcos Kulka, chief executive of H2 Chile, the South American country’s eponymous hydrogen association. Five other rules must be created for development to advance.
Like Colombia’s La Guajira, Chile’s Strait of Magellan could become a major clean hydrogen production hub thanks to strong winds, Gischler said.
Producers have to be bolder in finding customers, said Diego Arboleda, chief executive of Colombian developer Hevolucion.
“The client is not going to come through the door and say, ‘who wants to sell me 100 tonnes of hydrogen right now?'” said Arboleda.
Hevolucion’s plant, located near Colombia’s second-city Medellin, will start producing one tonne of clean hydrogen daily in November, and the company plans a pilot project to export green ammonia – produced by combining clean hydrogen with nitrogen – to the Port of Rotterdam for use as energy storage.
Colombia’s government should provide incentives domestically, Arboleda said, including rules about vehicles mixing diesel with hydrogen to reduce emissions.
Clara Bowman, chief operating officer of HIF Global, whose Haru Oni plant in southern Chile produces clean hydrogen to make methanol for use in e-fuels, said mandates on blending clean hydrogen-based fuels with existing gasoline would help.
Potential customers “need the regulatory support to make sure that they are not going to be uncompetitive in their industry as a result of making those sorts of decisions,” Bowman said.
Industry Leaders Call for Decisive Action on Clean Hydrogen at COP29
Industrial leaders from across the globe call for collective commitment to scale demand for clean hydrogen and its derivatives by 2030 underpinned by robust incentives and mandates.
BRUSSELS– As world leaders gather in Baku this week, a coalition of nearly two dozen industry associations around the globe is calling for urgent action to scale demand for clean hydrogen and its derivatives by 2030, underpinned by robust incentives and mandates.
Accelerating the implementation of the government policies that drive hydrogen deployment can unlock significant environmental, economic and societal benefits by mid-century:
- Abatement of 60-80 gigatons of CO₂,
- Savings of some $3.7 trillion in capital investments, driven by cross-border supply chains for hydrogen and its derivatives,
- Creation of some 25 million good-quality jobs worldwide.[1]
Global investment in hydrogen has grown 7-fold in just the last four years, reaching $75 billion in committed capital across 434 large-scale projects past FID. However, to fully realize its benefits, hydrogen deployment across end use sectors would need to reach some 75 Mt p.a. by 2030. Whereas the mandates and demand-side incentives put forward by governments to date could translate into 7 Mt p.a. by 2030 globally.
This is why the Hydrogen Council, together with the leading partner associations worldwide* put the spotlight on practical actions that can be taken by governments in the next two years to advance deployment, including the implementation of relevant incentives and mandates, infrastructure development, as well as the opportunity to incorporate hydrogen in countries’ 2025 Nationally Determined Contributions to signal continued commitment and attract investment.
We stand ready to work together with governments to accelerate the energy transition, strengthen energy security, and support political stability and just transitions world-wide.
*Ammonia Energy Association, Ammonia Europe, Australian Hydrogen Council, ABH2 Associação Brasileira do Hidrogênio, Canadian Hydrogen Association, H2 Chile Asociación Chilena de Hidrógeno, Clean Fuel Ammonia Association, Hidrogeno Columbia, Hydrogen Council, Hydrogen Europe, FCHEA Fuel Cell & Hydrogen Energy Association, IH2A India Hydrogen Alliance, Hydrogen Ireland, Japan Hydrogen Association, H2 México Asociación Mexicana de Hidrógeno, MENA Hydrogen Alliance, Hydrogen New Zealand, Hydrogen UK.
[i] Emerging trade corridors for hydrogen and its derivatives, Hydrogen Council – International Hydrogen Trade Forum joint initiative, May 2024
About The Hydrogen Council
The Hydrogen Council is a global CEO-led initiative with a united vision and long-term ambition for hydrogen to accelerate the clean energy transition. It brings together a diverse group of 140 companies from 20 countries across Americas, Europe, Africa, the Middle East and Asia Pacific. Spanning the entire value chain, and including large multinationals, innovative start-ups as well as investors, the Council’s membership represents some $9 trillion in market capitalization, 6.8 million in FTEs and some $6.4 trillion in revenues.
The Council is committed to unlocking the sustainability potential of clean hydrogen, fostering business and technological innovation as drivers for sustainable growth, creating quality jobs and delivering social value. Using its global reach to promote collaboration between industry, governments, investors, and the civil society, the Council provides insights on and pathways for accelerating the deployment of hydrogen ecosystems around the world. It also supports the development of international safety and sustainability standards, paving the way for the deployment of reliable hydrogen solutions at scale.
EFE and MTT Sign Second Agreement for the Implementation of Hydrogen in Railway Systems
The initiative seeks to advance sustainable mobility through the use of clean energies, promoting green hydrogen as a fuel alternative for national rail transport.
EFE Trenes de Chile, together with the Ministry of Transport and Telecommunications, the National Hydrogen Institute (INH2) and the company Hydrox, have signed a second agreement for the development of a hydrogen propulsion system in electric trains. This agreement, aligned with Chile’s sustainability goals, aims to reduce CO2 emissions and encourage the use of clean energy in rail transport.
The agreement includes the development and testing of a hydrogen-powered train prototype, using UT model equipment that was decommissioned in 2021 and operated in the Biotren service. This prototype will be worked on at the Maestranza San Eugenio and will be tested on routes defined by EFE, with the aim of evaluating its operational viability for future expansions of the project.
In relation to this initiative, the Minister of Transport and Telecommunications, Juan Carlos Muñoz, pointed out that “as a Government we have a strong commitment to environmental care, because we are aware of the global call to take care of our planet and from Chile, we want to contribute to this task. In this context, one of the efforts is to reduce the carbon footprint of our transport system and that is why we are exploring the incorporation of new energy sources, such as hydrogen in other modes of transport for both passengers and cargo.”
For this reason, with this agreement we are laying the foundations for a very important step towards the future. One that lays the foundations of a railway system that is powered by this clean energy. All important changes require a first step and we believe that this agreement is the starting point for that path.”
The project, in terms of funding, explores strategic alliances with national institutions and international actors. This agreement will not only allow the construction, but also an eventual implementation of this new technology in a service.
“We are making decisive progress in our Sustainability Strategy to 2035. This agreement reinforces our role as key actors in the fight against climate change, in direct collaboration with SDG 13 “Climate Action”. We are convinced that this type of initiative is essential to ensure efficient, safe and environmentally friendly mobility, marking a milestone in our roadmap towards cleaner and more environmentally friendly transport,” said José Solorza, General Manager of EFE Trenes de Chile.
This agreement is part of EFE’s Carbon Management Strategy, which aims to achieve carbon neutrality by 2035. The use of hydrogen as an energy source for trains will not only reduce CO2 emissions, but will also contribute to improved energy efficiency and lower operating costs. The announcement coincides with the International Day against Climate Change, celebrated on October 24, reinforcing the commitment to sustainability and technological innovation.
At the same time, within the framework of the company’s Development Strategy, it is preparing with new technologies for the upcoming renovations of rolling stock and the challenges of growth of passenger and cargo services in the different regions of the country.
The development of this project marks an important milestone in Chile’s transition to a cleaner, more efficient and sustainable rail transport model.