Gas-rich Argentina drafting low-carbon hydrogen promotion measures

Argentina has low-carbon hydrogen on its radar.

The government, chiefly eyeing the export market, is working on a draft promotional regime that will be presented before the end of the year, state news agency Télam reported.

Government officials are working with the private sector and hydrogen R&D consortium H2Ar, led by state oil and gas company YPF’s research unit Y-TEC.

Authorities also have a procurement process underway to contract parties to conduct technical studies encompassing costs, local and international demand, and regulations, Télam said, citing official sources.

For next year, the government hopes to get preliminary findings and begin working on blue hydrogen pilot projects and exploring financing options.

Argentina, according to production ministry data, currently produces 328,000t/y of hydrogen. By 2030, low-carbon hydrogen production could reach 500,000t/y and by 2050 13Mt/y, or around 3% of global hydrogen demand.

Blue hydrogen is derived from methane in natural gas. Carbon emissions are captured and stored.

A former provincial energy minister told BNamericas earlier this year that the government was planning to tap the country’s natural gas resources to produce hydrogen.

Some scientists say producing blue hydrogen can be worse for the planet than burning coal.

Argentina is a signatory to the Global Methane Pledge, an international effort to cut methane emissions by 30% compared with 2020 levels. The oil and gas industry is a contributor to methane emissions.

Argentina has a wealth of oil and gas reserves, chiefly within the Vaca Muerta shale play.

Last week the government announced an US$8.4bn green hydrogen project involving Australia’s Fortescue Future Industries.