EU set to help finance Argentina's green hydrogen ambitions with a slice of €10bn mega-fund
European Commission President Ursula von der Leyen continues charm offensive in Latin America with promise to channel cash into H2, renewables and raw materials
Hydrogen: hype, hope and the hard truths around its role in the energy transition
European Commission president Ursula von der Leyen made the announcement during a visit to Buenos Aires on Tuesday, as part of a massive charm offensive in Latin America that the bloc hopes will end in a free trade deal with Mercosur, a trading bloc comprising Argentina, Brazil, Paraguay and Uruguay.
“Argentina has immense potential for renewable energy — solar but also wind power for green hydrogen, for example,” she said in a speech in Buenos Aires. “You are on your way to become a regional hub for renewables, with the support of Global Gateway.
“And I think this is good news for both of us because it will accelerate your clean energy transition, it will create jobs here in Argentina. And of course, it is also of high interest for the European Union, as we need a reliable clean energy supplier.”
Clean energy can, realistically, only be shipped from Argentina to Europe in the form of green hydrogen or one of its derivatives, such as ammonia.
The EU’s Global Gateway fund aims to mobilise €300bn of European investment abroad to 2027 in strategic sectors.
The €10bn pot promised by the EU will be financed from the bloc’s coffers, and von der Leyen promised that this would be supplemented by cash from individual nation states that sign bilateral agreements with eligible countries, as well as from the private sector.
“Global Gateway creates a conducive environment for private investments from across Europe in Latina America and the Caribbean, and specifically here in Argentina,” von der Leyen added.
In fact, Argentina’s green hydrogen industry will have to share the cash with green hydrogen players elsewhere across Latin America and the Caribbean, as well as across other sectors such as renewables and critical raw materials including lithium.