Latin America and the Caribbean Hydrogen Market – Overview, Demand, Policies, Deals and Key Players

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In 2019, Latin America and the Caribbean used 4.1 Mt hydrogen, including both pure and mixed. All current production is conventional grey hydrogen, with the exception of small pilot plants for green hydrogen. Low carbon hydrogen in Latin America is nascent but quickly gaining attention, with many new project announcements. Most H2 in the region is currently produced in a few countries and used for oil refining and chemical production. GlobalData expects low carbon hydrogen production to begin at scale from 2025. In 2021 alone, at least 750 ktpa of new plants have been announced.

Trinidad and Tobago is the leader in the current hydrogen production in Latin America and the Caribbean followed by Mexico, Brazil, Argentina, Chile, Colombia, and others. In the traditional demand sector, oil refining has the largest hydrogen demand followed by ammonia, methanol, and steel production.

Hydrogen market in Latin America & the Caribbean, by country

Hydrogen market in Latin America & the Caribbean, by country

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What are the market dynamics in the Latin American and Caribbean hydrogen markets?

Present-day demand in the hydrogen market is in traditional sectors, namely oil refining, production of ammonia & methanol, and a small amount for steel production. If ambitious plans and policies continue to be followed, new demand sectors in transportation, industry, and power are likely to appear. For new sectors to take hold, governments will need to enact strong decarbonization policies and incentives, with effective planning and infrastructure to build a hydrogen supply chain. Several countries have also announced their intention to become hydrogen exporters for global markets. Chile’s target of 25 GW of electrolysis capacity by 2030 and also after 2025 seeks to become a major exporter of green hydrogen and ammonia. Colombia Hydrogen Roadmap (Draft, 2021) strategizes to develop blue H2 production in the short term, via CCUS retrofits and new capacity. Traditional uses will serve as the main demand sectors during this period.

What are the future demand sectors in the Latin American and the Caribbean hydrogen market?

The future demand sectors in the Latin American and the Caribbean Hydrogen market are mobility, steel production, and power to gas.

Hydrogen mobility potential

Argentina has experience using compressed natural gas (CNG) fuel and vehicles, which is similar to hydrogen fueling infrastructure. Hydrogen could be blended up to 20% with CNG in existing vehicles. Colombia has set binding targets for the sale of zero-emission buses, reaching 100% of sales by 2035, and including both BEVs and FCEVs, while Chile and Costa Rica have announced EV targets for light-duty vehicles and urban buses. Latin America relies heavily on long-distance road transport for freight, a prime sector for FCEVs. In Argentina, Chile, and Mexico, trucks travel twice the global average distance annually. Chile and Peru have large mining sectors, with thousands of heavy-duty mining trucks. Chilean company Codelco, the largest copper producer in the world, plans to reduce emissions by 70% by 2030 using electricity and hydrogen.

Hydrogen in steel production

Steel production via the direct reduction of iron-electric arc furnace (DRI-EAF) method could use pure hydrogen in place of natural gas, but this use is still in the demonstration phase. The most common production route, blast furnace-basic oxygen furnace (BF-BOF), is less easily converted to hydrogen. Hydrogen can be used in other high-temperature heat applications, including cement production.

Power to gas

Hydrogen can be used for medium- to long-term energy storage, in contrast to batteries which are a short-term storage solution. This will become increasingly important in Latin America as hydropower resources become less reliable due to climate change and more wind & solar energy is used. Currently, countries with large hydropower resources, like Paraguay, export excess electricity to neighboring countries.

Latin America & the Caribbean hydrogen market, by traditional demand sectors

Latin America & the Caribbean hydrogen market, by traditional demand sectors

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Who are the key market players in the hydrogen market in Latin America?

The key players in the hydrogen market include Siemens, Repsol, Enel, Iberdrola, and FMG Fortescue.

Market report scope

Hydrogen Usage (Year – 2019) 4.1 Mt
Future Demand Sectors Mobility, Steel Production, Power to gas
Key Players SIEMENS, Enel, IBERDROLA, Fortescue, Engie, Hydrogenics, Ecopetrol, REPSOL, BALLARD, YPF, Enaex, ANCAP, HYCHIC, Enegix

This report provides a comprehensive analysis of the Hydrogen market in Latin America and the Caribbean.

  • Analyze market trends for hydrogen production and demand in Latin America and the Caribbean.
  • Review of deals and partnerships in the hydrogen sector.
  • Geographies covered include – Mexico, Central America, the Caribbean, South America.
  • Comparison of the costs of hydrogen production routes.
  • Review of hydrogen policies and decarbonization plans.

Reasons to Buy

  • Understand hydrogen trends and opportunities in Latin America and the Caribbean.
  • View upcoming green hydrogen projects in LAC.
  • Understand when green hydrogen capacity will take off.
  • Compare current and future costs of hydrogen production routes in LAC.
  • Understand which countries are developing hydrogen-forward policies.
  • Understand which companies are the most active in the LAC market.

Siemens
Enel
Iberdrola
Fortescue Future Industries
Engie
Cummins
Hydrogenics
EcoPetrol
Repsol
Ballard Power Systems
YPF
Enaex
ANCAP
Hychico
Enegix
Air Liquide
CF Industries
Ford Motor
Daimler


Table of Contents

Executive Summary

Hydrogen in Latin America

Demand

Hydrogen Production

Policies & Plans

Deals & Key Players

Table

Table 1: Major Low-carbon Hydrogen Projects in LAC

Table 2: Paris Agreement Targets

Table 3: Top Countries by Maximum Practical PV Power Potential

Table 4: Top Countries by Mean Wind Speed

Table 5: Hydrogen Value Chain Deals in LAC

Table 9: Key Players in North American Hydrogen Value Chain

Figures

Figure 1: Completed and Announced Capacity up to 2030

Figure 2: Present-day Hydrogen Production

Figure 3: Hydrogen Capacity Scenarios to 2030

Figure 4: Hydrogen Demand Sectors, 2019

Figure 5: Current Steel Production Routes in LAC

Figure 6: Cost Range of Hydrogen Production Routes

Figure 7: Green Hydrogen Production Costs in Chile

Figure 8: Hydrogen Mentions in Company Filings

Frequently asked questions

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