Uruguay’s Ministry of Industry, Energy and Mining announced a plan to develop green hydrogen projects for the decarbonisation of freight transport, the energy sector and industry, as well as for exporting the fuel to other markets. It is also an opportunity to take advantage of the energy surpluses (hydro, wind and solar) that the country currently has.
As part of the first phase of a three-stage plan, the authorities this year opened a data room for an offshore green hydrogen pilot project. Uruguay is looking for interested parties to invest in a production plant and a fleet of hydrogen-powered trucks and buses. The National Direction of Energy of the Ministry of Industry will present the general idea of the first pilot project of green hydrogen production to be developed in the country, with the participation of the public and private sector. The pilot project, called H2U, could be used for heavy transport or other applications related to green hydrogen, such as the production of green fertilisers or the production of green ammonia as a fuel for ships, for example. According to the National Direction of Energy, initially the projects will be able to compete for the benefits that will be granted. This first step will be on a small scale.
An initial round of investment incentives – covering electricity supply and grid connection, as well as access to Ancap’s infrastructure, land and technical support services – could be launched before the end of the year.
Investors would receive tax exemptions under general legislation introduced to encourage foreign investment. Power would be provided by state-owned UTE, which would offer several concessionary tariff options. The second phase will be the expansion of the local green hydrogen ecosystem and the third phase will be the construction of offshore export infrastructure.
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