Uruguay's Offshore Wind Power Auction for Green Hydrogen Production
Key Ideas
- Uruguay is advancing plans to auction offshore blocks for wind power to produce green hydrogen through the use of state oil firm Ancap's offshore waters.
- The country aims to auction four offshore blocks with significant wind power capacity potential, envisioning the production of around 200,000t/y of hydrogen.
- The development includes an evaluation period of up to 10 years and a subsequent 30-year development and production phase, with Ancap outlining contract models for potential bidders.
- One of the central challenges for green hydrogen developers in Uruguay is to reduce production costs, secure offtakers, and navigate infrastructure and regulatory hurdles.
Uruguay is making strides in its efforts to harness offshore wind power for the production of green hydrogen by moving forward with plans to auction offshore blocks to prospective green hydrogen producers. The outgoing President has signed a decree granting the state oil firm Ancap the authority to utilize offshore waters for this purpose. The country aims to evaluate the feasibility and potential for green hydrogen production from these areas, with an eye on the e-fuels segment and leveraging biogenic CO2 availability. Uruguay plans to auction four offshore blocks, each with an average area of 700km2, projecting wind power capacity to generate around 200,000 tons of hydrogen annually. The process involves both offshore and onshore electrolysis options, with a potential 3GW capacity for a 500km2 block. With an estimated 275GW of offshore wind capacity, Uruguay is poised for significant green energy development. Ancap's work program outlines a timeline that includes an evaluation period of up to 10 years before the commencement of a 30-year development and production phase. The country faces challenges in driving down production costs, securing offtakers, and addressing infrastructure and regulatory requirements. In a related initiative, Ancap plans to launch a bidding round for natural or geologic hydrogen from onshore areas. This overall effort signals Uruguay's commitment to advancing its energy transition and embracing renewable sources for hydrogen production.
Topics
Projects
Energy Transition
Green Energy
Infrastructure Development
Renewables
Auctions
Offshore Wind Power
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