Green hydrogen strategy on its way to Uruguay

The South American country has published its roadmap for renewable H2 and clean derivatives.

The government of Uruguay has announced the publication of its Roadmap for Green Hydrogen and Derivatives, outlining its strategy for the production of clean H2 and derivative products. 

The strategy aims to produce one million metric tons of renewable H2 per year

The Uruguayan government’s Roadmap for Green Hydrogen and Derivatives aims to bring the country’s renewable H2 production up to 1 million metric tons per year by 2040.  The goal for the South American country is meant to be achieved through the installation of around 18 GW of renewable power capacity, as well as 9 GW of electrolyzers.

This equipment will be used to produce the H2 in quantities large enough for the country to meet its targets.  That said, it won’t all be installed at once.  Instead, the strategy has been developed for rollout across three phases of development.

The first green hydrogen development phase is already underway

The first development phase for this clean energy strategy has already begun and is expected to continue into next year.  That first phase of development is focused on the preparation of the market in the country and the creation of pilot projects for both the production and the use of the H2.

The second phase will start the following year and is expected to continue until 2030.  That second phase involves scaling up the Uruguayan H2 market, as well as the implementation of the first projects built at an export scale. 

The third and final phase of the strategy will begin with 2030 and will focus on consolidating the previous two phases for the purpose of meeting the targets for 2040.  This decade-long phase will establish and streamline all the components put into place during phases one and two.

Additional milestone for 2035

In addition to the three primary hydrogen fuel development phases in the government of Uruguay’s strategy, it has also set an intermediate target for the installation of 300 MW of electrolyzer capacity by the end of this decade, and for 3 GW of installed electrolyzer capacity by 2035.

By the close of 2022, Uruguay’s power mix was already composed of 91 percent renewables.  That was a reduction from 2019, when it had been 98 percent due to a high hydropower production year.