Uruguay's Offshore Wind Auction Advances Green Hydrogen Production
Key Ideas
- Uruguay is pushing to auction offshore blocks for wind power to green hydrogen producers, aligning with plans to evaluate the feasibility and production potential of green hydrogen derivatives.
- The country, with an estimated 275GW of potential offshore wind capacity, aims to auction four offshore blocks that could produce around 200,000t/y of hydrogen, targeting the e-fuels segment.
- State oil firm Ancap has been granted rights to use offshore waters, with a 30-year development and production phase planned after evaluation, as Uruguay works on driving down production costs for green hydrogen.
- Ancap is also planning a bidding round for natural or geologic hydrogen in four potential onshore areas, with draft rules and contract models aiming for bids and contracts in 2026.
Uruguay is making significant strides in advancing green hydrogen production through offshore wind energy. President Luis Lacalle Pou signed a decree granting state oil firm Ancap the rights to utilize offshore waters for the evaluation of green hydrogen production potential. Plans include auctioning off four offshore blocks, leveraging Uruguay's vast offshore wind capacity of around 275GW. Each block, with an average area of 700km2, could generate approximately 200,000 tons of hydrogen annually, supporting the country's focus on the e-fuels segment. The development timeline involves an evaluation period of up to 10 years followed by a 30-year production phase. Ancap is working on draft contract models and qualification rules for the forthcoming bidding process aimed at driving down production costs for green hydrogen. Additionally, Ancap is preparing for a bidding round for natural or geologic hydrogen in onshore areas, with bids expected in 2026. The country's efforts underscore the importance of infrastructure development and regulatory frameworks to support the growth of green hydrogen in Uruguay and beyond.
Topics
Green Hydrogen
Renewable Energy
Infrastructure
Energy Transition
Regulations
Offshore Wind
Electricity Generation
Oil Industry
Bidding Process
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