Uruguay will have to build 18 gigawatts of renewable energy and 9 GW of electrolysers to meet its 2040 green hydrogen targets, according to a government roadmap.

By then, green hydrogen production could reach 1 million tonnes/year, generating annual revenue of $1.9 billion and creating 30,000 direct jobs.

With demand for low-emission hydrogen rising in regions such as East Asia and Europe, Uruguay wants to position itself as an exporter.

Green hydrogen would also be used to produce fuels, raw materials for industry and fertilisers. This would require capturing CO2 from domestic industrial production, which the government says could be powered by biomass.

The estimates are based on price forecasts of $1.2-1.4/kg of green hydrogen before the end of this decade, Kallanish learns.

According to the roadmap, the country will develop its first pilot projects over the next couple of years to reach 1 GW of hydrogen production capacity by 2030.

Between 2017 and 2020, 97% of Uruguay’s electricity was produced by renewable energy, with wind and solar capacity potentially reaching 90 GW by 2030. The South American country is now focusing on the decarbonisation of transport and industry.