Uruguay publishes definitive 2040 green hydrogen roadmap

The Uruguayan energy ministry has published the country’s definitive 2040 green hydrogen roadmap.

A draft had been put out to public consultation over a year ago.

Officials estimate that a hydrogen and derivatives industry could generate U$1.9bn in revenue a year by 2040 and more than 30,000 quality jobs.

Hydrogen production could potentially reach 1Mt/y by 2040, which would require the installation of 18GW of new renewables capacity and 9GW of electrolyzers, the document states.

Uruguay, given it has forestry and biofuels industries, is deemed well placed to produce derivatives based on e-methanol, made by combining green hydrogen with carbon dioxide, which can be captured from the atmosphere or obtained from biomass processing, the latter option being targeted by Uruguay. 

Derivates production is forecast to start from 2026.

By 2030, for projects over 500MW, the document states, renewable energy costs may permit Uruguay to achieve a levelized cost of hydrogen of between US$1.20/kg and US$1.40/kg in the west and US$1.30/kg and US$1.50/kg in the east of the country. Offshore costs could range between US$1.70/kg and US$1.90/kg. Around 95% of electricity a year in Uruguay is typically generated from clean sources: conventional hydroelectric power stations and non-conventional renewable sources, chiefly wind parks. Potential water demand associated with hydrogen production in 2040 is estimated to be the equivalent of 0.7% of that used in irrigation and 4% of industrial consumption. 

Hydrogen production and generation projects need to undergo an environmental impact review process, managed by the environment ministry. Work, in areas such as production of a hydrogen project evaluation guide, is underway. Multi-stakeholder collaboration work in the area of skills training, among others, is also targeted.

The roadmap, meanwhile, outlines the role of the State.

“The State will have a key role as coordinator, driver and party responsible for ensuring a sustainable and integrated management of the green hydrogen economy across national territory,” it says. “It must ensure the efficient use of local resources, promoting dialogue and creating an environment that permits long-term development that benefits all the population, adding value locally.”

Uruguay has several hydrogen projects in the development-permitting phase, including an export-focused US$4bn synthetic fuels project and an initiative to help decarbonize the local heavy transport sector. Uruguay does not produce crude oil or gas, although the State has issued licenses to private firms to conduct hydrocarbons exploration offshore, where hydrogen production platforms have also been envisaged. 

The roadmap publication announcement coincided with the opening day of an energy conference hosted in Uruguay by regional energy organization Olade, Uruguay’s energy ministry and development bank IDB. The International Renewable Energy Agency's first Latin America energy transition investment forum was held in parallel. 

The conference was told that regulatory requirements were under analysis in Uruguay, with a goal of proposing associated rules in areas including safety.

Elisa Facio, head of the ministry’s general secretariat, was appointed energy minister and current role-holder Omar Paganini foreign minister in a cabinet reshuffle on Saturday. 

Click here to download the roadmap