The South America Hydrogen Electrolyzer Market was valued at US$ 3,226.38 Thousand in 2021 and is estimated to grow at a CAGR of 12.6% over the forecast period to reach US$ YY Thousand by 2028.
According to the International Energy Agency (IEA), South America could become "a key contributor to the global push toward low‑carbon Hydrogen." In line with global developments, governments in the region are taking definitive steps to cultivate Hydrogen's potential as a key component of their clean energy transitions and a source of export revenues. For instance, in November 2020, at IEA-OLADE Latin America Ministerial Roundtable, many ministers pointed to Hydrogen as a promising energy carrier for the region's longer-term energy transitions.
Hydrogen production and use in South America is limited to only some countries, where it is used mainly as a feedstock for refineries and the chemical industry. However, many countries such as Brazil, Argentina and Chile are moving forward with strategies and pilot projects to foster its use as an energy carrier. For instance, a group such as Argentina's H2ar consortium and Chile's H2Chile have identified opportunities and promoted relevant partnerships and value chains.
Furthermore, several countries with Chile in the lead are eyeing the potential for Hydrogen to decarbonize transport, especially heavy-duty and public transport fleets, and opportunities to export low-carbon Hydrogen to markets outside the region.
For instance, in 2020, Chile was the first South American country and one of a dozen globally to publish a national Hydrogen plan. Chile plans to become carbon neutral by the end of 2050, and "Hydrogen is essential" in this goal, Chile's energy minister Juan Carlos Jobet said in a recent speech. In addition, Chile is rapidly decarbonizing its economy. It is set for 6 GW of renewables in 2021 and is shuttering its coal plants.
According to Chile's Energy Minister, the country has 5 GW of electrolyzer capacity under development by 2025. Chile has 40 projects in different stages of development by local and international companies. For instance, Enaex SA, in partnership with French multinational Engie SA, is developing a green ammonia production complex in northern Chile with 1 GW-plus of planned electrolyzer capacity.
Also, in February 2021, AES Gener SA, a Chilean generator, signed a memorandum of agreement with an undisclosed international Hydrogen producer to conduct a utility study for the first large green Hydrogen-based ammonia project in Chile.
Furthermore, according to IEA, the transport sector is promising in South America due to technological advancements and the company's efforts towards shifting to sustainable energy. For instance, In Uruguay, a state oil company named Administración Nacional de Combustibles Alcohol y Pórtland (Ancap) started a pilot project to develop Hydrogen for long-haul transport.
In addition, Argentina’s state oil company YPF SA in partnership with the national research council Consejo Nacional de Investigaciones Científicas y Técnicas de Argentina (Conicet) is spearheading a Hydrogen consortium called H2Ar. It involves 40 companies, including gas transporters, oil and gas companies, renewable producers and potential off-takers.
Brazil has seen a flurry of new Hydrogen announcements. For instance, in March 2021, Australian firm Enegix Energy Pte conducted a feasibility study to build a $5 billion green Hydrogen plant in the Port of Pecém, Ceará state. The Base One plant will be sited in Ceara in Brazil and will produce 600 Million KG of green Hydrogen per annum.
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