Paraguay

paraguay
GH2 Country Portal – Paraguay

Green Hydrogen Vision

Paraguay envisions green hydrogen as a transformative force in its journey toward a sustainable, low-carbon economy. Leveraging its vast hydropower resources, the country aims to position itself as a global leader in green hydrogen production, focusing on decarbonising key industries, enabling clean transportation, and supporting regional and international energy markets. Paraguay’s strategy emphasises innovation, economic diversification, and infrastructure development to create a robust green hydrogen ecosystem. Paraguay seeks to enhance energy security, attract investments, and contribute significantly to global efforts to combat climate change by capitalising on its renewable energy potential. 

National Strategy

Paraguay’s 2021 green hydrogen strategy seeks to leverage its abundant hydropower resources to position itself as a leader in green hydrogen production. The roadmap emphasises using green hydrogen as an energy vector to decarbonise transportation, industry, and agriculture and to reduce reliance on imported fossil fuels. It also aims to foster technological development, innovation, and infrastructure to support a sustainable hydrogen economy, aligning with international climate commitments like the Paris Agreement and the Sustainable Development Goals (SDGs). Paraguay is also gearing up to implement a more comprehensive national hydrogen strategy that will encompass more industries in the coming years. 

Capacity Targets

  • Paraguay plans to produce 90,000 tons of green hydrogen annually by 2030, with an installed capacity of approximately 600 MW to meet domestic and regional demand. 

  • A pilot project to test hydrogen production and application in transportation is a key near-term goal, focusing on long-distance and river transport, which are critical to the nation’s economy. 

Impact Targets

  • Decarbonisation: Reduce greenhouse gas emissions by replacing imported fossil fuels with domestically produced green hydrogen. 

  • Economic Transformation: Position Paraguay as a logistics and renewable energy hub in South America, creating new economic opportunities and jobs. 

  • Energy Security: Improve energy self-sufficiency by utilising surplus hydropower for hydrogen production and reducing exposure to global fossil fuel price volatility. 

Policy Spotlight

ATOME Energy is progressing significantly in developing a green hydrogen fertilizer facility in Villeta, Paraguay, having appointed the Swiss company Casale as its sole EPC contractor. This initiative, leveraging a 145MW capacity, represents a vital advancement in sustainable agriculture in South America. 

Financing

The roadmap emphasises public-private partnerships and international cooperation as key financing mechanisms. 

  • Support from the Inter-American Development Bank (IDB) and other international organisations is crucial for funding pilot projects and building the necessary infrastructure. Paraguay also plans to attract private investments by offering incentives and regulatory frameworks and promoting the country’s strategic location and renewable energy potential. 

  • ADA Green Hydrogen Holdings BV intends to invest over USD 100 million in building a green hydrogen and ammonia production facility in Villa Hayes. Operations are expected to commence in the first quarter of 2028. 

Government Green Hydrogen Lead

Vice Ministry of Mines and Energy (VMME),

Ministry of Public Works and Communications