{"id":21998,"date":"2026-03-13T12:26:17","date_gmt":"2026-03-13T12:26:17","guid":{"rendered":"https:\/\/globaltax.com.uy\/green-hydrogen-in-uruguay\/"},"modified":"2026-03-13T12:26:17","modified_gmt":"2026-03-13T12:26:17","slug":"green-hydrogen-in-uruguay","status":"publish","type":"post","link":"https:\/\/globaltax.com.uy\/en\/green-hydrogen-in-uruguay\/","title":{"rendered":"Green hydrogen in Uruguay"},"content":{"rendered":"<p>The transition to green hydrogen is emerging as one of the key strategies in the new phase of energy change that our country is beginning to adopt. According to 2018 Intergovernmental Panel on Climate Change (IPCC) reports, to keep global temperature rise below 1.5\u00b0C, global carbon neutrality needs to be achieved by 2050.<\/p>\n<h2>What do we mean by green hydrogen?<\/h2>\n<p>Hydrogen, ranked first in the periodic table, is the simplest and lightest element, consisting of one proton and one electron, and exists stably in the form of a diatomic molecule (H\u2082).<\/p>\n<p>Today, almost all hydrogen (99%) is obtained from fossil sources such as natural gas and coal, resulting in the emission of greenhouse gases.<\/p>\n<p style=\"text-align: center;\"><a class=\"maxbutton-1 maxbutton maxbutton-contacto\" target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/wa.link\/7nkfn8\"><span class='mb-text'>Cont\u00e1ctanos para m\u00e1s informaci\u00f3n<\/span><\/a><\/p>\n<p>More than 120 million tons of hydrogen are produced annually, two-thirds of which is pure hydrogen and the rest is mixed with other gases. Its demand is mainly concentrated in refineries, the production of ammonia (used in fertilizers and other products), as well as indirectly in the manufacture of methanol, steel, among others.<\/p>\n<p><strong>Green hydrogen, on the other hand, is produced without resorting to fossil fuels, using exclusively renewable energy sources.<\/strong><\/p>\n<p>The process with the greatest potential identified for green hydrogen production to date is water electrolysis (H\u2082O), whereby, using electricity obtained from renewable sources and water, hydrogen (H\u2082) is separated from oxygen (O\u2082), resulting in a process free of greenhouse gas emissions.<\/p>\n<h2>Why green hydrogen in the world and why now?<\/h2>\n<p>According to the 2018 Intergovernmental Panel on Climate Change (IPCC) reports, it is imperative to achieve carbon neutrality globally by 2050 in order to keep the global temperature increase below 1.5\u00b0C.<\/p>\n<p>Currently, 80.2% of the world&#8217;s energy consumption is based on fossil energy sources (Renewables &#8211; REN 21, 2021). As the world&#8217;s population continues to grow and economic development is expected to increase, energy demand is expected to continue to rise.  <strong>This makes critical the need to move towards an energy transition that minimizes carbon emissions.<\/strong>  Within the scope of the Paris Agreement (2016) and under the United Nations Framework Convention on Climate Change, each country has committed efforts to reduce its greenhouse gas emissions, with many setting a goal of achieving carbon neutrality by 2050, and establishing regulations to achieve this goal.<\/p>\n<p><strong>In response, various industries are aligning their practices to this end:<\/strong><\/p>\n<ul>\n<li>Leading automotive manufacturers have committed to making their vehicles zero-emission by 2050, some even before that date.<\/li>\n<li>Companies in the maritime and aviation sectors are developing decarbonization strategies, including the progressive incorporation of hydrogen and green synthetic fuels into their operations.<\/li>\n<li>Even companies in the energy sector, including those whose core business revolves around hydrocarbons such as Shell and British Petroleum, have declared their intention to be carbon neutral by 2050.<\/li>\n<\/ul>\n<p>Low-carbon hydrogen plays an essential role in achieving the goal of zero net emissions by 2050. It is estimated that hydrogen could contribute to avoiding the emission of 80 gigatons (Gt) of cumulative carbon dioxide (CO2) and represent 20% of the total reduction needed for that year. This would involve the use of 660 million tons of renewable, low-carbon hydrogen, equivalent to 22% of global final energy demand in 2050, according to McKinsey &amp; Company studies from 2022.<\/p>\n<p style=\"text-align: center;\"><a class=\"maxbutton-1 maxbutton maxbutton-contacto\" target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/wa.link\/7nkfn8\"><span class='mb-text'>Cont\u00e1ctanos para m\u00e1s informaci\u00f3n<\/span><\/a><\/p>\n<p><strong>Green hydrogen plays a crucial role in the ongoing transition to more sustainable energy, contributing significantly to achieving the environmental targets set for 2050.<\/strong>  Its most outstanding value lies in its ability to facilitate the decarbonization of sectors and processes that are challenging to address through other strategies, or that cannot directly benefit from renewables or electrification.<\/p>\n<p>This energy vector offers the possibility of transferring renewable energy to a wide range of applications. Using electricity from renewable sources, hydrogen can be produced for use in various fields.<\/p>\n<p>Hydrogen can be used directly in various sectors without conversion, such as road transport, iron reduction, heating, among others, or converted into green ammonia or synthetic fuels for use in various applications.<\/p>\n<p>Synthetic fuels, obtained by combining hydrogen with CO2, offer an alternative to fossil fuels. Among them, e-methanol and e-jetfuel stand out for their potential application. E-methanol is presented as a promising option for shipping and is produced through the Sabatier process. On the other hand, e-jetfuel, used in commercial aircraft turbines, is manufactured using the Fischer-Tropsch process, which is characterized by its high stability.<\/p>\n<p>These options represent innovative steps towards sustainability in sectors traditionally dependent on high-carbon energy sources.<\/p>\n<p>&nbsp;<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-18311 size-full\" src=\"https:\/\/globaltax.com.uy\/wp-content\/uploads\/2024\/02\/Hidrogeno-en-uruguay.png\" alt=\"Green hydrogen in Uruguay\" width=\"709\" height=\"714\" srcset=\"https:\/\/globaltax.com.uy\/wp-content\/uploads\/2024\/02\/Hidrogeno-en-uruguay.png 709w, https:\/\/globaltax.com.uy\/wp-content\/uploads\/2024\/02\/Hidrogeno-en-uruguay-298x300.png 298w, https:\/\/globaltax.com.uy\/wp-content\/uploads\/2024\/02\/Hidrogeno-en-uruguay-150x150.png 150w\" sizes=\"(max-width: 709px) 100vw, 709px\" \/><\/p>\n<p>Green hydrogen also plays an important role in strengthening the resilience of the energy system by facilitating the incorporation of large-scale renewables.<\/p>\n<p>Acting as a means of transporting green energy between different regions, green hydrogen and its derivatives can be moved economically over long distances, similar to how oil or liquefied natural gas are transported today.<\/p>\n<p style=\"text-align: center;\"><a class=\"maxbutton-1 maxbutton maxbutton-contacto\" target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/wa.link\/7nkfn8\"><span class='mb-text'>Cont\u00e1ctanos para m\u00e1s informaci\u00f3n<\/span><\/a><\/p>\n<p>This provides the opportunity for countries with limited renewable energy resources of their own to import green hydrogen or its derivatives for electricity generation or for use in the applications described above, thus contributing to a more inclusive and sustainable energy transition.<\/p>\n<h2>What is the reason for choosing Uruguay?<\/h2>\n<p>Uruguay has successfully completed the first phase of its energy transformation, achieving almost complete decarbonization of its electricity matrix. Between 2017 and 2020, 97% of the electricity generated in the country came from renewable sources, distributed as follows: 44% hydroelectric, 32% wind, 18% biomass and 3% solar.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-18312 size-full\" src=\"https:\/\/globaltax.com.uy\/wp-content\/uploads\/2024\/02\/Uruguay-generador-de-energias.png\" alt=\"energies in Uruguay\" width=\"1073\" height=\"800\" srcset=\"https:\/\/globaltax.com.uy\/wp-content\/uploads\/2024\/02\/Uruguay-generador-de-energias.png 1073w, https:\/\/globaltax.com.uy\/wp-content\/uploads\/2024\/02\/Uruguay-generador-de-energias-300x224.png 300w, https:\/\/globaltax.com.uy\/wp-content\/uploads\/2024\/02\/Uruguay-generador-de-energias-1024x763.png 1024w, https:\/\/globaltax.com.uy\/wp-content\/uploads\/2024\/02\/Uruguay-generador-de-energias-768x573.png 768w\" sizes=\"(max-width: 1073px) 100vw, 1073px\" \/><\/p>\n<p>The next phase in Uruguay&#8217;s energy evolution encompasses a number of significant challenges, including boosting the hydrogen economy and advancing the decarbonization of both the energy sector and the production of raw materials.<\/p>\n<h2>Uruguay&#8217;s advantages to produce and export green hydrogen<\/h2>\n<p>In terms of boosting the hydrogen economy, Uruguay has numerous advantages to become a leading producer and exporter of green hydrogen, as well as for domestic consumption.<\/p>\n<ul>\n<li><strong>Thanks to the quality, abundance and synergy between wind and solar resources,<\/strong> the country is in a position to achieve highly competitive hydrogen production costs globally. By 2030, it is estimated that costs could be between 1.2 and 1.4 USD\/kg, with total production capacity exceeding 90 GW, taking advantage of the locations with the greatest renewable energy potential.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>In addition, Uruguay has <strong>key infrastructure such as hydroelectric power plants, a robust electricity grid, an electricity matrix with 97% renewable energy, abundant water and easy access to CO2 from sustainable sources,<\/strong> which would facilitate the efficient production of synthetic fuels such as e-methanol and e-jetFuel.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>The country also enjoys excellent <strong>freshwater availability<\/strong>, thanks to its location in a large regional basin and a favorable rainfall regime.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>The port of Montevideo, with its access to the Atlantic Ocean and strong internal logistics, <strong>reinforces Uruguay&#8217;s position as a strategic center for trade<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>In addition, Uruguay is distinguished by its <strong>strong institutional framework, a deep commitment to republican principles and respect for the rule of law<\/strong>. This has earned it a prominent place among the most attractive economies for sustainable investment globally, according to JP Morgan&#8217;s ESG Index.<\/li>\n<\/ul>\n<h2>Impact of the development of green hydrogen and derivatives in the country.<\/h2>\n<p>The adoption of green hydrogen in Uruguay promises to boost the country&#8217;s industrial, economic and employment growth, increase its energy independence, reduce its exposure to fluctuating oil prices and save foreign exchange.<\/p>\n<p>Efforts to produce green hydrogen and its derivatives will lead to industrial initiatives that generate employment and added value. This includes the export of innovative industrial products, such as new-generation fuels created from renewable energies, water and by-products of biomass-based industries, using advanced production techniques.<\/p>\n<p>Uruguay will position itself as a leading producer and exporter of energy and renewable products, opening up a new and strategic long-term export sector. This responds to the growing demand for renewable fuels by sectors in the process of decarbonization, such as the shipping and aeronautical industries, making Uruguay a key destination for investments in this area.<\/p>\n<p>The green hydrogen industry has the potential to create more than 30,000 direct skilled jobs in areas such as plant construction, operations, maintenance, logistics and technical training.<\/p>\n<p style=\"text-align: center;\"><a class=\"maxbutton-1 maxbutton maxbutton-contacto\" target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/wa.link\/7nkfn8\"><span class='mb-text'>Cont\u00e1ctanos para m\u00e1s informaci\u00f3n<\/span><\/a><\/p>\n<p>It is estimated that green hydrogen and its derivatives could generate revenues for Uruguay of approximately US$2 billion per year by 2040, a figure comparable to that of other significant export sectors in the country. In addition, a reduction in CO2 emissions of around 7 million tons is anticipated, thanks to the substitution of fossil fuels, which is equivalent to the current emissions of the Uruguayan energy sector.<\/p>\n<p>This technological advance will require the training of highly qualified professionals and will open up avenues for research, development and innovation (R&amp;D&amp;I) within the country, in line with global trends in technological development and business innovation opportunities.<\/p>\n<p>By gaining experience in this field, Uruguayan companies will be able to expand into regional and global markets, replicating the success achieved with wind, solar and biomass energy. This phenomenon has already enabled local companies to undertake projects in countries such as Argentina, Brazil, Colombia and Mexico.<\/p>\n<p>The production of green hydrogen will also facilitate the opening of markets in the European Union, Japan, Korea and other countries with demand for these products, which can improve Uruguay&#8217;s trade balance and open opportunities for other products.<\/p>\n<p>The Uruguayan government is working on a regulatory framework to establish criteria for the sustainable development of green hydrogen projects and industrial initiatives, thus ensuring efficient and sustainable management of the necessary resources.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The transition to green hydrogen is emerging as one of the key strategies in the new phase of energy change that our country is beginning to adopt. According to 2018 Intergovernmental Panel on Climate Change (IPCC) reports, to keep global temperature rise below 1.5\u00b0C, global carbon neutrality needs to be achieved by 2050. What do [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":21419,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[293],"tags":[297],"class_list":["post-21998","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-in-uruguay","tag-investing-in-uruguay"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Green hydrogen in Uruguay - Global Tax<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/globaltax.com.uy\/en\/green-hydrogen-in-uruguay\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Green hydrogen in Uruguay - Global Tax\" \/>\n<meta property=\"og:description\" content=\"The transition to green hydrogen is emerging as one of the key strategies in the new phase of energy change that our country is beginning to adopt. 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