The Role of Hydrogen in Decarbonisation: Investment Opportunities for Latin America

The report identifies four key investment opportunities for hydrogen in Latin America: green steel, green hydrogen production via electrolysis, green chemicals (methanol, ammonia, and fertilisers), and heavy-duty mining vehicles in remote locations. It argues that while net-zero models project hydrogen's share of final energy consumption at 3-20% by 2050, the region must more than double its planned electrolysis capacity by 2030 to align with 1.5-compatible scenarios. Success depends on policy signals, including carbon pricing and certification schemes, to attract international finance and avoid carbon lock-in.

• Net-zero models estimate that hydrogen will account for between 3% and 20% of final energy consumption by the year 2050 to maintain global warming at 1.5 degrees.
• Latin America must more than double its currently planned electrolysis capacity additions by 2030 to meet the production levels required by 1.5-compatible scenarios.
• The report identifies four primary investment opportunities for the region: green steel production, green hydrogen production through electrolysis, green chemicals (including methanol, ammonia, and fertilisers), and heavy-duty mining vehicles in remote locations.
• Hydrogen-powered heavy-duty mining vehicles in remote areas are considered the most attractive land transport application due to power and range requirements; this application becomes cost-competitive with a carbon price of approximately USD 60/tCO2.
• To attract international finance and accelerate the transition, Latin American countries require clear long-term strategies and policy incentives such as fiscal incentives, certification schemes, and carbon pricing.

APA

NewClimate Institute (2023). The Role of Hydrogen in Decarbonisation: Investment Opportunities for Latin America. http://www.newclimate.org/resources/publications/the-role-of-hydrogen-in-decarbonisation-investment-opportunities-for-latin

Chicago

NewClimate Institute. The Role of Hydrogen in Decarbonisation: Investment Opportunities for Latin America. 2023. http://www.newclimate.org/resources/publications/the-role-of-hydrogen-in-decarbonisation-investment-opportunities-for-latin.

Wikipedia

{{cite report |author=NewClimate Institute |title=The Role of Hydrogen in Decarbonisation: Investment Opportunities for Latin America |date=23 February 2023 |url=http://www.newclimate.org/resources/publications/the-role-of-hydrogen-in-decarbonisation-investment-opportunities-for-latin |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2023role, author = {{NewClimate Institute}}, title = {{The Role of Hydrogen in Decarbonisation: Investment Opportunities for Latin America}}, institution = {NewClimate Institute}, year = {2023}, month = feb, url = {http://www.newclimate.org/resources/publications/the-role-of-hydrogen-in-decarbonisation-investment-opportunities-for-latin}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }