Market Overview
The Latin America renewable hydrogen market was valued at USD 92.73 Million in 2024 and is projected to reach USD 7,165.76 Million by 2033, growing at a CAGR of 57.50% during the forecast period 2025-2033. The market expansion is driven by abundant renewable energy resources, proactive government policies, rising international investments, and increased industrial demand for clean energy, especially in countries like Chile, Brazil, and Colombia. These nations lead efforts to expand electrolyzer capacity, reduce hydrogen production costs, and enhance global trade partnerships.
Study Assumption Years
- Base Year: 2024
- Historical Years: 2019-2024
- Forecast Period: 2025-2033
Latin America Renewable Hydrogen Market Key Takeaways
- Current Market Size: USD 92.73 Million (2024)
- CAGR: 57.50%
- Forecast Period: 2025-2033
- Latin America benefits from a highly varied array of renewable energy sources including hydroelectric, wind, and solar energy, supporting the growth of green hydrogen production.
- Approximately 60% of electricity in Latin America is generated from renewable sources, establishing a favorable environment for low-carbon hydrogen.
- Countries like Chile with the Atacama Desert’s high solar irradiance and Brazil with extensive coastline for wind power contribute significantly to renewable energy production.
- Governments in the region pursue proactive policies including national hydrogen strategies, legal reforms, and fiscal incentives to stimulate the renewable hydrogen market.
- Colombia’s Law 2099 of 2021 aims to produce 1 GW of green hydrogen and 50,000 tons of blue hydrogen annually, backed by a national hydrogen strategy allocating USD 2.5 billion.
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Market Growth Factors
Abundant Renewable Energy Resources
Latin America has a collection of diverse renewable energy resources that could make the region a major player in the market for renewable hydrogen, such as hydroelectricity, winds and solar. In fact the region already gets around 60% of its electricity from renewables, and the International Energy Agency (IEA) identifies important potential to use natural renewable energy reservoirs in Latin America and the Caribbean to produce low-emission hydrogen and hydrogen-based fuels. The Atacama Desert in Chile has extreme solar irradiance. Brazil has a long coastline along. Renewable energy powers electrolysis for green hydrogen production in these countries.
Proactive Governmental Policies
Most governments in Latin America adopted national hydrogen strategies, sponsored legislation, or gave tax incentives toward developing renewable hydrogen value chains. An example is Colombia's Law 2099 of 2021, intending for production of 1 GW of green hydrogen and 50,000 tons of blue hydrogen per year in the longer term. In addition, the Colombian government has allocated USD 2.5 billion to promote the development of this sector, and its policies provide an enabling framework to attract national and international investments and accelerate the development of sustainable hydrogen economies. Transparent regulations and market funding promote the development of the necessary infrastructure in all interested regions of Colombia.
Growing Industrial Demand and International Investments
Increased industrial demand for clean renewable hydrogen in applications such as power generation, transportation and others is mainly driving growth. Global investors and regional programs strive to increase electrolyzer capacity. These efforts will help produce hydrogen at a lower cost within industry and drive industry demand. Latin American countries, like Chile, Brazil and Colombia, strengthen trade and industrial relations among each other. Hydrogen Europe and H2 Chile understood each other through a Memorandum of Understanding during May 2022, and they accelerated hydrogen development and traded. The Chilean National Hydrogen Strategy seeks to produce up to 160 million tons of clean hydrogen by 2050 and to competitively produce US$0.8-1.1/kg by 2030 for market development.
Market Segmentation
Technology Insights:
- Proton Exchange Membrane Electrolyzer: Covers membrane-based electrolysis using proton exchange to generate hydrogen efficiently from renewable electricity.
- Alkaline Electrolyzer: Utilizes alkaline solution to electrolyze water into hydrogen and oxygen, offering mature and cost-effective technology.
- Solid Oxide Electrolyzer: Employs solid oxide cells operating at high temperatures for hydrogen production with high efficiency.
Application Insights:
- Power Generation: Hydrogen used as a clean fuel source for electricity production, supporting renewable energy integration.
- Transport: Hydrogen serves as an alternative fuel to reduce emissions in transportation sectors.
- Others: Includes various other applications of renewable hydrogen beyond power generation and transport.
End-User Industry Insights:
- Food and Beverages: Use of hydrogen in processing and preservation applications.
- Medical: Hydrogen applications in healthcare and medical technologies.
- Chemical: Hydrogen as a feedstock in chemical manufacturing.
- Petrochemicals: Hydrogen employed in refining and petrochemical processes.
- Glass: Utilization of hydrogen in glass manufacturing industries.
- Others: Additional industries utilizing renewable hydrogen.
Country Insights:
- Brazil
- Mexico
- Argentina
- Colombia
- Chile
- Peru
- Others
Regional Insights
Latin America as a whole shows strong potential for renewable hydrogen market growth, underpinned by abundant renewable energy resources and supportive government policies. The region derives approximately 60% of its electricity from renewable sources, making it well-placed for green hydrogen production. Countries such as Chile, Brazil, and Colombia lead the market with initiatives to expand electrolyzer capacity, drive down production costs, and foster international trade partnerships. The market is expected to grow robustly at a CAGR of 57.50% between 2025 and 2033.
Recent Developments & News
- November 2024: Hydrogen Europe and H2 Chile signed a Memorandum of Understanding to strengthen industry cooperation on clean hydrogen deployment and trade.
- October 2024: Chile implemented a national green hydrogen strategy targeting production of up to 160 million tonnes of clean hydrogen annually by 2050, aiming to reduce hydrogen costs to between 0.8-1.1 USD per kilogram by decade’s end.
Competitive Landscape
The competitive landscape of the industry has also been examined along with the profiles of the key players.
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