Uruguay’s state oil company Ancap has announced a feasibility study for a new $4 billion green hydrogen project. How will this amplify the production of low-cost renewable energy?
The planned green hydrogen and the e-fuel facility would initially be aimed at trucks used in the forestry sector.
According to a statement from Ancap, Uruguay will work with HIF Global, a company supported by Porsche and building e-fuel facilities in Australia, Chile, and the US.
Work is due to begin in 2024 and will require an investment of close to $2 billion for green hydrogen and synthetic gasoline production, plus an additional $2 billion to install wind farm turbines to power the plant.
Over the past decade, Uruguay has dramatically transitioned its energy to renewable sources, placing it at the forefront of clean power in the region.
Investment in hydrogen such as this project, will help see Latin America as a trailblazer in helping combat climate change and ensuring the move away from fossil fuels.