BUYERS AND REGULATORS

A World Economic Forum report published in August recorded some $6.1 billion as earmarked for renewable investments - including clean hydrogen - across the region by multilateral lenders and funds, as well as foreign and regional governments, in addition to a feasibility study for a $4 billion clean hydrogen plant in Uruguay.

That is a tiny fraction of the $100 billion to $300 billion investment the IDB's Maria Florencia Attademo-Hirt told a roundtable discussion that the industry would need in the region by 2030.

There are about 65 clean hydrogen projects in Latin America, mostly in the early development stages, according to the Wilson Center think tank that hosted the roundtable.

As of the end of 2023 Colombia had some 28 projects, according to Gasca, including an industrial-scale project at state-run energy company Ecopetrol's refinery in the city of Cartagena, set to come online in 2026.

Brazil's Petrobras is also eyeing clean hydrogen to replace gray hydrogen in its own operations, according to the company's energy transition chief, Mauricio Tolmasquim.

State-controlled Petrobras plans to build two green hydrogen plants, and is holding talks with potential customers, Tolmasquim has said, adding it is still establishing prices.

Chile has identified 12 regulations relevant to green hydrogen development that must be updated, said Marcos Kulka, chief executive of H2 Chile, the South American country's eponymous hydrogen association. Five other rules must be created for development to advance.

Like Colombia's La Guajira, Chile's Strait of Magellan could become a major clean hydrogen production hub thanks to strong winds, Gischler said.

Producers have to be bolder in finding customers, said Diego Arboleda, chief executive of Colombian developer Hevolucion.

"The client is not going to come through the door and say, 'who wants to sell me 100 tonnes of hydrogen right now?'" said Arboleda.

Hevolucion's plant, located near Colombia's second-city Medellin, will start producing one tonne of clean hydrogen daily in November, and the company plans a pilot project to export green ammonia - produced by combining clean hydrogen with nitrogen - to the Port of Rotterdam for use as energy storage.

Colombia's government should provide incentives domestically, Arboleda said, including rules about vehicles mixing diesel with hydrogen to reduce emissions.

Clara Bowman, chief operating officer of HIF Global, whose Haru Oni plant in southern Chile produces clean hydrogen to make methanol for use in e-fuels, said mandates on blending clean hydrogen-based fuels with existing gasoline would help.

Potential customers "need the regulatory support to make sure that they are not going to be uncompetitive in their industry as a result of making those sorts of decisions," Bowman said.

Green Hydrogen: A Comparison of Production Technologies