Uruguay has completed the first phase of its energy transition, with the decarbonisation of its electricity generation. According to 2019 data, renewable energies constitute 98% of the country’s electricity mix, with 50% hydropower, 30% wind, 15% biomass, and 3% solar. The country also generates 63% of its primary energy supply with renewable energies. Companies in the cellulose industry promise to become one of the most sustainable carbon sources in the country, deriving carbon from the pulp and paper industry for Power-to-X production. These initiatives play a crucial role in the country’s next phase of energy transition.
Next phase kickstarted with the Green Hydrogen Sectoral Fund
The next phase includes the development of a hydrogen economy and the defossilisation of the remaining energy sector. This year, in line with these goals, the country has marked a significant milestone with the commencement of its inaugural green hydrogen pilot project. The project, named ‘H24U’ is funded by the Green Hydrogen Sectorial Fund in Uruguay. The initiative has been granted a non-repayable state investment of 10 million US$ and will initially focus on the heavy load transport sector, which represents approximately 28% of Uruguay’s total energy demand. Furthermore, the project intends to inject green hydrogen into existing natural gas networks in the north of the country.
In addition, Uruguay has officially kickstarted its inaugural project to produce e-fuels from green hydrogen, thereby starting to build up the country’s hydrogen value chain. The construction of green hydrogen facilities is one of the nation’s largest investments, with an estimated expenditure of 4 billion US $.
IX Renewable Energy Congress LATAM stressed next action to modernise regulations
At the most recent Renewable Energy Congress ‘LATAM Renewables’ by the Uruguayan Association of Renewable Energy, the potential of green hydrogen and synthetic fuels were key topics. Latin America’s renewable energy stakeholders stressed the necessity of modernised regulations to boost investment and enhance the usage of renewable energy, electric mobility, and green hydrogen – a field where Uruguay has significantly advanced.
Frank Mischler, Director of the PtX Hub, highlighted the importance of certification for green hydrogen and Power-to-X:
Certification has to be part of the design of PtX projects from the start. You have to know your consumers and markets and their requirements
he explained on stage alongside Eng. María José González, Coordinator of the Environmental Unit in the Uruguayan Ministry of Industry, Energy and Mines.
This dialogue is only a snapshot of the efforts by Latin American countries to advance hydrogen certification, which the PtX Hub is supporting. In Uruguay, for example, training programmes for the Ministry of Industry, Energy and Mines are building knowledge on certification.
