Uruguay Secures Funding for $43.5 Million Green Hydrogen Plant Development

Uruguay Secures Funding for $43.5 Million Green Hydrogen Plant Development

The Uruguayan Government, in collaboration with Italian automotive firm and local company Saceem, plans to develop a $43.5 million green hydrogen production plant in Uruguay. The project, known as H24U, will receive $10 million in funding from the Uruguay Ministry of Industry, Energy and Mining (MIEM) through its Green Hydrogen Sector Fund over a period of 10 years.

The initial focus of the H24U project will be on supplying green hydrogen to heavy-duty transportation, which accounts for approximately 28% of Uruguay’s energy demand. This initiative aims to address the carbon emissions associated with the transportation sector by providing an alternative, cleaner fuel source.

Additionally, the MIEM envisions expanding the project to inject green hydrogen into the existing gas network in the city of Paysandú. This pilot initiative would be the first of its kind in Uruguay and would enable the evaluation of decarbonizing larger-scale gas networks. The MIEM hopes that the project will foster the development of regulations and knowledge in green hydrogen production, facilitating its implementation in other sectors throughout the country.

This venture aligns with Uruguay’s broader efforts to explore green hydrogen as a means of reducing greenhouse gas emissions and transitioning to a more sustainable energy system. In 2021, the MIEM launched the H2U initiative, aimed at developing a green hydrogen pilot project in the country. Furthermore, the state-owned company ANCAP has also expressed interest in exploring green hydrogen production from offshore wind farms.

By investing in the development of a green hydrogen production plant, Uruguay aims to capitalize on the country’s renewable energy potential and contribute to the global shift towards cleaner and more sustainable energy sources. The success of the H24U project could serve as a model for future green hydrogen initiatives in Uruguay and potentially inspire similar endeavors in other regions.

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