Bases for the financing of green hydrogen and derivatives projects – barriers and strategies

The report underscores key findings and recommendations for the advancement and financing of green hydrogen projects in Argentina. It identifies Argentina as a potential global exporter with competitive production costs, supported by projections of 55 GW of renewable energy and 30 GW of electrolysis capacity by 2050. Emphasis is placed on investments in research and development (R&D) to foster innovation and competitiveness, advocating for partnerships with international firms that include technology transfer clauses to benefit local industries. The report highlights the green hydrogen and derivatives value chain as a significant opportunity for Argentina’s reindustrialisation, offering business prospects for local companies supplying goods and services.

The paper estimates that up to 90 billion USD in capital investment will be required by 2050. It recommends various financial instruments, such as green funds, tax incentives, and international agreements, to overcome development barriers, with multilateral development banks playing a crucial role in the initial phases. To stimulate demand for green hydrogen, the report proposes policies and incentives for end-users, including blending mandates, tax benefits for industrial sectors, and carbon pricing mechanisms. International cooperation through strategic alliances with global demand actors and regional hubs is advised to mitigate financing barriers and enhance Argentina’s competitive position in the green hydrogen market.