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

This report by the NewClimate Institute examines the role of hydrogen in achieving 1.5 degrees of global warming and identifies four primary investment opportunities for Latin America, specifically Argentina, Brazil, and Peru, to integrate into the global hydrogen economy.

• Net-zero models estimate that hydrogen's share of final energy consumption will be between 3% and 20% by 2050 to maintain global warming at 1.5 degrees, requiring significant investment to lower production costs and enhance end-use applications.
• The report identifies green steel production as a key opportunity, noting that early adopters can leverage international trade demand for low-carbon products and utilize mechanisms such as carbon contracts for difference or certification schemes to manage risk.
• While Latin America has high renewable energy potential to lower production costs, the region must more than double its planned electrolysis capacity additions by 2030 to align with 1.5-compatible scenarios.
• The production of green chemicals, including methanol, ammonia, and fertilisers, represents a short-term opportunity because hydrogen is already utilized in these processes, allowing for the substitution of fossil-based hydrogen.
• Heavy-duty mining vehicles in remote locations are identified as 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.

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} }