Former Argentine federal energy chief in Neuquén blue hydrogen push

Former Argentine federal energy minister Darío Martínez submitted to Neuquén province’s legislature a bill to establish a hydrogen institute to spur sector development.

The institute would work in areas such as policy formulation and project creation, with a focus on tapping Neuquén’s vast natural gas resources. 

It would be known as the Instituto Neuquino del Hidrógeno, or INEH for short.

Martínez, a lawmaker in the province, cited energy transition winds blowing globally.

“We need to develop other energies like blue hydrogen, utilizing natural gas as an energy source,” Martínez said in a statement. “The world is heading towards clean energies and we need to be in the vanguard in this change.”

In Neuquén’s fragmented congress, Martínez represents the Peronist-led coalition Unión por la Patria.

Several green hydrogen projects have been proposed in Argentina, where local hydrocarbons company Capex, using wind power, has been producing the energy carrier on a small scale for over a decade for blending with natural gas for electricity generation. The demonstration plant is in Chubut province. 

A hydrogen promotion bill was presented by the previous federal administration but remains in congress. 

In terms of renewable energy resources and spare land, Argentina is well placed to become a producer of green hydrogen and its derivatives.

Overall, an improvement on the macroeconomic front and increased regulatory stability could help unlock inflows of foreign investment. 

Right-wing President Javier Milei’s economic reform bill contains a proposed incentives regime for large projects. 

The bill can be downloaded via the link in the top right-hand corner of the page.

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Argentina’s electricity regulator Enre is due to hold a public consultation next month on a 500kV power line proposed by local hydrocarbons and renewables player Pampa Energía.

The 7km line would connect its Pepe VI wind park in Buenos Aires province to the grid via the Bahía Blanca-Central Térmica Luis Piedra Buena transformer station. 

In parallel, Pampa Energía has sought the regulatory green light for the farm to enter the wholesale power market.

Pepe VI is being built in three phases, with completion of the first two, for a combined 140MW, due in H2.

The public consultation is planned for March 27, according to a resolution in the official gazette.

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In other clean energy news from Argentina, generator Genneia sought authorization for its 100MW Los Molles solar PV project in Mendoza province to participate in the wholesale power market.

Los Molles is due to start operations around mid-2025, according to the BNamericas project profile database. 

In 2022, Los Molles was awarded 60MW of transmission priority dispatch capacity, granted to projects targeting the Mater term market, where the likes of corporates contract clean power directly from generators.    

ALSO READ: Argentina’s 2025 NCRE goal sliding out of reach

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Elsewhere on the power map, generator YPF Luz sought authorization for its 62MW Córdoba province General Levalle I wind park to participate in the wholesale power market.

General Levalle I is due to enter service this half. It was awarded 38MW of transmission priority dispatch capacity in an auction corresponding to 2Q22. In a subsequent round, for 4Q22, the project sought 17MW but failed to secure capacity. 

Another wind farm, General Levalle II, was awarded 37MW in the 3Q22 round.