Uruguay plans 2023 hydrogen, offshore wind tenders

Uruguay's state oil and gas firm Ancap is preparing a series of offshore green hydrogen and wind tender rounds starting 2023.

Ancap is looking for companies experienced in offshore wind, hydrogen or deepwater oil and gas to carry out its ambitious plan to create a maritime hydrogen production hub powered by its significant offshore wind potential.

According to news outlet Energía Estratégica, the company’s E&P head Juan Tomasini said the tender rounds will be conducted with rolling applications, with offers being opened in two stages in May and November next year.

Talks with the private sector have led the state firm to write a draft version of the tender's terms, although clearance by the industry, energy and mining ministry is still pending, according to the official.

Initially, the tender will offer 10 blocks of 500km2 each, with average potential to install 2-3GW of wind capacity and produce 320,000t/y of green hydrogen, the report said.

The model will reflect that of hydrocarbon exploration and production tenders. Winning bidders will have 10 years to explore and assess the area's potential and conduct tests, and can afterwards present a full development plan or renounce the acreage.

Offshore hydrogen production sidesteps many of the budding sector's roadblocks, including community opposition (projects usually span large areas of land and require coastal access), and the need for large port infrastructure. However, it is more costly and technically demanding.

Uruguay is estimated to have 250GW of offshore wind potential, in addition to 30GW on land. The country is also preparing a tender for an onshore green hydrogen pilot scheme later this year.