The Argentine Government has released the National Strategy for the Development of the Hydrogen Economy (the “H2 Strategy”). The Strategy was released pursuant to the Energy Transition Plans to 2030 and 2050 (see our remarks on these documents, here), and bills of law currently being analysed in the Congress (see our remarks on these documents, here (available in Spanish)).
The H2 Strategy provides greater detail on the Government planning framework for H2 development and related activities. The key takeaways of the H2 Strategy are:
- Investment in H2 and associated industries of ≈US$ 90 billion.
- Deployment of electrolysis facilities aggregating 30 GW and 55 GW of new renewable power generation plants.
- Total hydrogen production around 5 MT per year, which will be destined to exports (≈3.75 MT) and for domestic use (≈1.25 MT).
- Creation of 5 new production hubs and construction of new ports.
- Levelized cost of green H2 ≈1.4 USD/kg.
Further, the H2 Strategy includes measures aiming at positioning Argentina as a global exporter of H2, embedded in a global and regional cooperation agenda, with the end-goal of supplying H2 to markets like Japan and Germany.
In turn, the H2 Strategy proposes actions to foster the local demand for H2, aiming for 100,000 tons per year by 2035, 500,000 tons per year by 2045 and 1 MT by 2050.
Finally, the H2 Strategy considers H2 in relation not only for exports and local use, but also for transport, industrial use, gas networks, electricity systems, and cross-cutting issues such as safety, skills, and environmental impacts.
For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Luciana Tapia Rattaro, Rocío Valdez and/or Victoria Barrueco.