The first interurban bus powered by green hydrogen in Chile, put on display in October 2023, is a project promoted by the state agency Corporation for the Promotion of Production and the company Foton, represented by Andes Motor. File Photo by Elvis Gonzelez/EPA
July 22 (UPI) — With more than 200 projects under development and an estimated investment of up to $300 billion, Latin America is positioning itself as a key player in the global low-emissions hydrogen market.
The green hydrogen industry has the potential to reshape the energy and economic outlook of Latin America and the Caribbean over the coming decades, observers say.
According to projections by the Latin American Energy Organization, or OLADE, the region could produce between 20 million and 30 million tons of hydrogen annually by 2050.
That volume would be enough to power the entire public transportation systems of cities the size of Buenos Aires, Mexico City and Lima for several years.
This type of hydrogen, known as green hydrogen, is produced from water using electricity generated by renewable sources such as solar or wind power.
Through a process similar to breaking down a recipe into its ingredients using energy, pure hydrogen is extracted, which can be stored and used to power trains, trucks or ships, or supply energy to industries without polluting the air.
Andrés Rebolledo Smitmans, executive secretary of OLADE, said the growth of the green hydrogen industry depends on two key factors: a sustained increase in electricity generation from renewable sources — such as solar and wind — and the creation of sufficient demand to drive down costs and compete with fossil fuels.
“The region is already the greenest in the world. In 2024, 70% of its electricity came from clean sources. But we still lack the scale and cost efficiency for green hydrogen to displace fossil-based alternatives,” he said.
In a recent report, OLADE identified more than 200 green hydrogen projects in various stages of development, with Chile, Brazil, Colombia, Argentina, Costa Rica and Peru leading the way.
If realized, this transformation could generate up to 350,000 new jobs and more than $13 billion in annual exports, the group predicted.
In Magallanes, in southern Chile, the Haru Oni project converts wind energy into hydrogen, and then into a synthetic fuel that could replace gasoline in cars and airplanes. It currently produces about 130,000 liters per year — enough to power roughly 2,000 autos for a full year.
Colombia, meanwhile, is moving forward with plans in the La Guajira region, where strong, consistent winds and intense sunlight converge. The goal is to develop a production zone capable of supplying domestic industries and serving as an export hub to the Caribbean and Europe.
Beyond domestic use, the primary goal is export.
Argentina, Chile and Bolivia forecast combined annual hydrogen exports of more than 9 million tons by 2050. Still, the path forward faces major hurdles, including the lack of regulatory guidelines, a shortage of skilled technical workers, investment risks and insufficient infrastructure for production, storage and transport.
That’s why institutions such as the Inter-American Development Bank and OLADE are promoting programs to train technicians, certify clean production and attract foreign companies.
“The hydrogen industry won’t take off on its own. It requires political coordination, committed investment and a long-term vision,” Rebolledo said.
