LatAm H2 - The Growing Importance of Low-Carbon Hydrogen in Latin America

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LatAm H2: The Growing Importance of Low-Carbon Hydrogen in Latin America | September 2022 8 BRAZIL Brazil's hydrogen demand stood at about 400,000Mt in 2019. Virtually all of this was pure hydrogen, with oil refining accounting for 83% of total demand. The remaining volumes were used for ammonia-based fertilizer production. Brazil has published its own safety standards for hydrogen, and since 2018 has participated in the International Organization for Standardization (ISO) hydrogen technical committee on hydrogen technologies (ISO TC 197). In February 2021, the Brazilian National Council for Energy Policy established hydrogen as a priority area for R&D resources, and Brazil's Energy Research Office released an initial technical document establishing the basis for a national hydrogen strategy. In August 2021, the Ministry of Mines and Energy, in collaboration with other entities, presented the guidelines for a National Hydrogen Program, and exactly a year later in August 2022, the government approved a National Hydrogen Program (PNH₂). The program is aimed at strengthening the hydrogen market and industry in Brazil, as well as global export opportunities. In July 2022, BNDES announced a program to support pilot projects for the production or use of green hydrogen in Brazil. The main objective of the program is to encourage the production and storage of zero-carbon fuel in Brazil using renewable energies, while leveraging on the country's export potential. Brazilian port complexes, including Suape in Pernambuco, Pecém in Ceará, and Açu in Rio de Janeiro are spearheading efforts to evaluate green hydrogen projects in Brazil, each having signed numerous MOUs with multinational firms. CHILE Green hydrogen is at the center of Chile's goal to achieve carbon neutrality by 2050. Some of the specific objectives included in the Chilean national hydrogen strategy are: • Development of a regulatory framework to ensure safety and legal certainty. • 5GW of electrolysis capacity built or under development by 2025. • Production of the world's cheapest green hydrogen by 2030 (at a cost less than US$1.50/kg). • Upgrading existing natural gas pipelines to allow for the transportation of green hydrogen. • US$50 million in financing to develop green hydrogen projects. Chile has identified US$12 billion in potential green hydrogen projects. As of January 2022, international energy and chemical companies producing green hydrogen had announced commitments of more than US$1 billion in investments.

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