Latin American nation of Uruguay may just become the next hot spot for renewable energies, especially solar. The government's proposed green hydrogen roadmap sees potential for 20 GW renewable capacity, mainly wind and solar, to power 10 GW electrolyzers by 2040.
Specifically, the plan is to install 150 MW to 300 MW electrolyzer capacity by 2025 under phase I along with 200 MW to 500 MW of renewable energy capacity and supply this green hydrogen for the heavy transport segment within the country as well as for export derivatives.
Under phase II, by 2030 1 GW to 2 GW of electrolyzer capacity will be set up powered by 2 GW to 4 GW of renewable energy which will then be supplied nationally and also exported.
By 2040, phase III will target 10 GW of electrolyzer capacity with 20 GW renewable energies to be used for synthetic fuels, hydrogen and ammonia. These measures are anticipated to generate up to 30,000 jobs in plant construction, operation & maintenance, logistics as well as technical jobs.
Uruguay aims to invest around $2 billion on developing the green hydrogen space by 2040 and make it a 'new export sector' catering to the demand for hydrogen and synthetic fuels.
The proposed roadmap is based on data from independent consultant McKinsey that envisions Uruguay's total renewable generation potential as 60 GW of solar and 30 GW for wind energy resources.
A green hydrogen policy, explained the government, is needed for the country to reduce its fossil fuel consumption and transition to clean energy as it seeks energy independence. It will also help decarbonize hard-to-abate sectors since there are multiple uses of this fuel.
"The incorporation of hydrogen can give Uruguay, as is evident, a new line of industrial development," said the Minister of Industry Energy and Mining (MIEM) Omar Paganini. "Added to this is greater energy independence and, therefore, foreign exchange savings."
Earlier in May 2022, MIEM invited proposals under its $10 million strong Green Hydrogen Sector Fund to support research, innovation and training for concrete and sustainable projects as a pilot, aiming for the projects to come online in 2025. It has received 10 proposals in response that are now being evaluated.
Uruguay's green hydrogen roadmap is open for public consultation till August 15, 2022 on the government website.
According to the International Renewable Energy Agency (IRENA), Uruguay had 3.74 GW of total renewable energy installed till the end of 2021, including an estimated amount of 258 MW.