Advancing the Energy Transition: A Focus on Green Hydrogen in Latin America and the Caribbean
Key Ideas
  • Green hydrogen is seen as essential for tackling climate change in Latin America and the Caribbean. However, challenges exist due to the difficulty of transporting hydrogen and the need for infrastructure upgrades.
  • The development of green hydrogen projects in the region is a long-term investment that requires significant financial commitment.
  • Countries like Colombia are exploring the potential of green hydrogen production for export, although domestic energy deficits highlight the importance of strengthening local electrical systems.
  • The Ibero-American Energy Traders Association advocates for the liberalization of energy markets in Latin America to ensure fair pricing and promote energy-saving behaviors among companies and households.
The Ibero-American Energy Traders Association (AICE) is actively promoting a free energy market in Latin America to boost the growth of renewables. In an interview with BNamericas, AICE vice president Emili Rousaud discussed the outlook for green and blue hydrogen in the region. Rousaud emphasized the significance of green hydrogen for addressing climate change, mentioning challenges related to infrastructure adaptation for hydrogen transportation. The interview highlighted the need to stimulate demand for green hydrogen, particularly in sectors like shipping and aviation. Rousaud mentioned the complexities involved in transitioning to a hydrogen-based economy, citing the limitations of current gas pipelines and the energy loss in hydrogen-electricity conversions. Regarding specific projects, Rousaud mentioned the European Union's investment in a hydrogen gas pipeline from Barcelona to Marseille. The conversation also touched on Colombia's plans for offshore wind energy projects that could include green hydrogen production for export. However, concerns were raised about exporting energy when domestic deficits exist, stressing the importance of fortifying local electrical systems for effective energy transition. A key focus of the discussion was the impact of political influence on the energy sector in Latin America. Rousaud highlighted the negative consequences of government intervention in energy markets, mentioning cases like Colombia where electricity companies face debt due to mandated rate reductions. AICE advocates for market liberalization to ensure fair pricing signals that encourage energy-saving behaviors among consumers and companies. The overall sentiment of the interview leans towards the positive potential of green hydrogen in the region, despite acknowledging the challenges and long-term nature of investment required. The importance of infrastructure development, market liberalization, and strengthening local energy systems were key takeaways from the conversation.
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