Green hydrogen roadmap finalised | Uruguay plans to produce 1GW of H2 by 2030 for as little as $1.20/kg
South American country aims to export renewable H2 and its derivatives — ammonia, methanol, e-fuel and green iron
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The small South American country has already largely decarbonised its power system, reaching 94% renewable energy in 2016-22, and believes it can harness its natural resources to build a globally competitive green hydrogen industry.
“The quality, abundance and complementarity of the country’s wind and solar resources would allow the energy transition process to continue [beyond decarbonising the power sector], achieving competitive costs in the production of hydrogen at scale,” the document states.
“By 2030, green hydrogen production costs could reach $1.2-1.4/kg, with a potential for installing renewable energies greater than 90GW of power in the sites with the best wind and solar resources of wind and solar.”
The roadmap envisages domestic demand for green hydrogen of 3GW by 2040 — for the use in heavy-duty trucks, buses and tractors, with derivatives used as shipping and land-based fuels, and also in the production of fertiliser.
And on top of that, another 5-6GW of electrolysers could be used to produce DRI for export. “This opportunity requires the development of port infrastructure in the east of the country and further analysis, which is why they [sic] are not included as goals in this roadmap,” the document explains.
In simple terms, the roadmap consists of three phases:
If the goals are achieved, by 2040 the new green hydrogen industry would add $1.9bn annually to the national economy — roughly 2% of the country’s future GDP; the creation of more than 30,000 jobs; a decreased dependence on imported fossil fuels; and the decarbonisation of “other industrial sectors”.
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