Peru

Peru
GH2 Country Portal – Peru

Green Hydrogen Vision

Peru envisions green hydrogen as a transformative solution to drive its energy transition, decarbonise key industries, and position itself as a competitive global exporter. Leveraging its abundant renewable energy resources, the country aims to integrate green hydrogen into mining, heavy transport, and manufacturing sectors while fostering innovation and creating new economic opportunities. Through government, industry, and academia collaboration, Peru aspires to establish a robust hydrogen ecosystem that supports sustainable growth and contributes to global climate goals. 

National Strategy

Peru aims to position green hydrogen (H2V) as a pillar of its energy transition and decarbonisation goals. The draft strategy presented by H2 Peru emphasises integrating renewable energy into industry, transportation, and power generation sectors while leveraging its renewable resources to become a competitive global exporter. The draft roadmap highlights government, industry, and academia collaboration to establish a robust hydrogen ecosystem, focusing on innovation, local solutions, and market competitiveness. 

Capacity Targets

  • While no known capacity targets exist, Peru has identified regions with high renewable energy potential (north, south, and central areas) for H2V production. 

  • Key applications include replacing fossil fuels in mining, refineries, fertilisers, and heavy transport sectors. 

  • The strategy aims to develop several production hubs to meet domestic demand and export requirements.

Impact Targets

  • Decarbonisation: Enable significant reductions in greenhouse gas emissions across industries that are challenging to electrify, such as heavy transport, mining, and steel production up to 69.4 MtCO2 eq. 

  • Economic Growth: Generate new employment opportunities, with estimates suggesting a minimum of 22,000 jobs by 2030, growing significantly by 2050. 

  • Innovation and Research: Foster technological solutions tailored to local needs, enhancing Peru’s role in the global hydrogen economy. 

Policy and Project Spotlight

  • The Peruvian government has sanctioned a 4,000-hectare concession in the Arequipa region, a key area for utilising low-cost solar energy to generate green hydrogen and ammonia. Despite ongoing tensions within its territory, the nation is working to enhance and expand its energy system through multiple initiatives. The facilities aim to produce 440,000 tonnes of green ammonia annually, raising production to 1 million at each site. This investment is intended to cater to the rising demand for green ammonia in the European Union, Japan, and Peru. 
  • To foster sustainable development and facilitate the energy transition, H2 Peru, the Peruvian Hydrogen Association, and the Netherlands have signed a Memorandum of Understanding (MoU) representing a significant step in bilateral cooperation to advance renewable hydrogen in Peru. This agreement creates a collaborative framework to foster a supportive environment for developing renewable hydrogen, both for its use in Peru and for its export to the Netherlands and Europe. The MoU's goals encompass sharing best practices and regulatory insights, encouraging technological innovation through successful international examples, establishing dialogue among public, private, and academic sectors to emphasise hydrogen as a vital energy source, and enhancing commercial relationships across its entire value chain, from production to storage, transportation, and utilisation. 

Financing

The draft strategy emphasises public-private partnerships to mobilise production, storage, and transport infrastructure investments. Early-stage studies and pilot projects are critical to attracting further investments, supported by tax incentives, subsidies, and regulatory frameworks. Potential export agreements with major hydrogen markets like Germany, Japan, and South Korea are key to securing funding for large-scale projects. 

  • Phelan Green Energy has revealed plans to invest more than $2 billion in Peru to create a large-scale green ammonia production facility. 

  • Peru’s energy minister announced that developers plan to invest upwards of $12.5 billion in green hydrogen initiatives within the country. Rómulo Mucho pointed out South African company Phelan Green Energy's proposal to build a $2.5 billion solar-powered green hydrogen facility in La Joya, situated in the Atacama desert of southern Peru. He also mentioned that another enterprise is keen to invest over $10 billion in a significantly more extensive project, as the state-run news outlet Andina reported. 

Government Green Hydrogen Lead

Ministry of Energy and Mines (MINEM)