Renewable hydrogen will be crucial for reaching climate neutrality; however, it should be reserved for applications where direct electrification is not possible.
Argentina’s national hydrogen strategy, currently being drafted, should prioritise the use of hydrogen in key sectors such as industry, shipping, and aviation, and in providing flexibility to a renewable-based power system. For other use cases, direct electrification is usually more economic and efficient.
Argentina is well-positioned to become a major global producer of hydrogen due to its vast energy potential.
Argentina’s renewable energy resources can produce cheap electricity that can be converted into renewable hydrogen. Natural gas with carbon capture and storage could be used as a bridge technology but should be switched to renewable hydrogen as soon as possible.
Developing a renewable hydrogen economy can help decarbonise Argentina’s industry and create important socio-economic benefits to the country.
Hydrogen can enable the production of green products with a high export demand potential, such as ammonia, fertilisers, and synthetic fuels. Scaling up the production of these products would stimulate sustainable industrial growth and contribute to economic diversification and job creation.
International cooperation could strengthen the Argentinian renewable hydrogen economy and
thus boost global decarbonisation.
Renewable hydrogen production in Argentina can greatly benefit global decarbonisation and it would therefore be in the interest of the international community to support the expansion of the country’s infrastructure and industrial development. Regional cooperation would also strengthen Latin America's position as hydrogen producer in international fora on standards and trade.
The role of renewable hydrogen is getting more and more attention in the global pursuit of climate neutrality. The trading potential of hydrogen and its derivatives, combined with the important social and economic benefits of a hydrogen economy, is bringing new players into the hydrogen game. In addition, the global fossil fuel crisis has underlined the need for new energy suppliers and a more diverse industrial market, shifting the spotlight on renewable-rich countries.
Argentina has vast energy resources that position it as one of the potential future exporters of renewable hydrogen and Power-to-X (PtX) products. However, when embarking on the road to becoming one of the world’s hydrogen hubs, certain aspects need to be carefully analysed. Energy infrastructure development, the use of natural gas, certification, and investment needs are among the hot topics currently being discussed at the national level.
This publication aims to contribute to the discussion on the priorities and next steps that are part of the decision-making process to maximise the local benefits of scaling up renewable hydrogen production in Argentina. We also highlight the significant contribution to the global decarbonisation that the country’s potential export of green products can make.
Project Manager PtX South America