UHL says these opportunities represent the first of many in the region.

United H2 Limited’s Chief Executive Officer, Will Davidson, commented:

"Latin America forms a key part of our global hydrogen development strategy. Like Australia, the region has abundant natural resources and is laying the groundwork to become a renewable hydrogen powerhouse, and the team at GreenH2 LATAM is a trusted partner to deliver our solutions into the region."

"We believe there is a large opportunity to partner with local governments and businesses to build a hydrogen ecosystem in the region for domestic use and export, which will deliver significant benefits to local economies."

“United H2 Limited has a range of hydrogen end-use technologies and production methods that are ready to be commercialised in the region and create an end-to-end market. In Brazil, analysts believe that the cost of green hydrogen production will range from $2.70 to $5.60 per kilogram of hydrogen by 2030, which means hydrogen could become a cheaper, cleaner alternative for the economies in the region.”

GreenH2 LATAM’s Chief Executive Officer, Héctor Sánchez Baena, commented:

"Partnering with United H2 Limited represents a significant step forward in our mission to establish Latin America as a global leader in renewable hydrogen. This collaboration will accelerate the adoption of cutting-edge hydrogen technologies, create jobs, and drive sustainable development across the region. Together, we are building the foundation for a cleaner, more energy-independent future.”

Overview of the LATAM Market

A 2023 Deloitte report — Green Hydrogen: Energizing the Path to Net Zero — highlighted Latin America's potential to produce cost-competitive green hydrogen in quantities exceeding domestic needs, thanks to its high renewable endowment and ample land availability.

UHL believes the shift in the region is underscored by energy trends highlighted by the Latin American Energy Organization, which reported that 59% of Latin America’s electricity in 2022 was generated from renewable sources.

Over the past decade, Latin America has experienced significant growth in renewable energy investments. In 2021, the region attracted around US$19.6 billion, with Brazil leading at US$13.3 billion, followed by Mexico with US$3.4 billion and Chile with

US$1.3 billion. Furthermore, as of early 2024, green hydrogen projects in the region have garnered considerable attention, with announced investments amounting to approximately US$40 billion.

Peru’s Minister of Energy and Mines, Rómulo Mucho, announced that companies are eyeing investments exceeding US$12.5 billion to establish green hydrogen plants in the Andean country.

The European Commission plans to offer Argentina €200 million in funding to develop its green hydrogen industry, aiming to secure a future supply of this energy carrier, while the Chilean government plans to provide subsidies of up to $10 million for the construction of new electrolyser factories or assembly plants in the country.

Additionally, the new Mexican President, Claudia Sheinbaum Pardo, has released an Energy Sovereignty for Sustainable Development framework that emphasises reducing dependency on fossil fuels and maximising the use of renewable energies to promote sustainable development and energy sovereignty.

In Mexico, 16 hydrogen-related projects have been identified, either in development (8) or announced (8). Most focus on green hydrogen, aiming to establish production plants or adoption strategies across various industries and regions, with total investments exceeding US$20 billion.

Of these projects, seven target green hydrogen production, five focus on green hydrogen usage, three on green ammonia production, and one on green methanol production.

NTPC Green Energy and Nayara Energy Join Forces for Green Hydrogen Initiative