Uruguay

uruguay
GH2 Country Portal – Uruguay

Green Hydrogen Vision

Uruguay envisions green hydrogen as a transformative energy solution to enhance its sustainable development and global competitiveness. Building on its success in renewable energy, the country aims to leverage its abundant wind and solar resources to produce green hydrogen for domestic use and export. Uruguay’s strategy focuses on decarbonizing key sectors like transportation, industry, and agriculture while fostering innovation and attracting international investments. By positioning itself as a regional leader in green hydrogen, Uruguay seeks to drive economic growth, create jobs, and contribute to global efforts to combat climate change. 

National Strategy

Uruguay’s 2023 green hydrogen strategy aims to leverage its renewable energy resources to become a global leader in hydrogen production and export. The roadmap outlines a phased approach to integrate hydrogen into domestic industries like transportation and fertilisers while targeting export markets for hydrogen derivatives such as e-methanol, green ammonia, and sustainable aviation fuels. This strategy supports Uruguay’s commitment to carbon neutrality by 2050 and aligns with global decarbonisation efforts. 

Capacity Targets

  • Renewables Capacity: By 2040, Uruguay aims to develop approximately 18 GW of renewable energy capacity. 

  • Hydrogen Production Capacity: Targeting 9 GW of hydrogen production capacity by 2040, with initial pilot projects scaling to industrial and export-grade production. 

  • Electrolyser Development: Early stages focus on small-scale pilot projects (~20 MW), scaling up to 1–2 GW by 2030 and beyond. 

Impact Targets

  • Domestic Applications: Decarbonising heavy transport, long-distance buses, and agricultural vehicles while fostering local fertilizer production. 

  • Export Potential: Uruguay aims to capture a share of the global hydrogen market, with revenues projected to reach USD 1.9 billion annually by 2040. 

  • Job Creation: Over 30,000 direct skilled jobs are expected in plant construction, operations, and maintenance, along with growth in research and technical education.

Policy and Project Spotlight

  1. A consortium of Uruguayan companies, including Ventus, Montes del Plata, Fraylog, and Fidocar, aims to launch the country’s inaugural green hydrogen plant by 2026. The Kahiros project will utilize a 2 MW electrolyser fed by a 4.8 MW solar farm to generate green hydrogen intended for six Hyundai fuel-cell trucks that will transport timber. 
  2. The Uruguayan Ministry of Industry, Energy and Mining (MIEM) has authorized the state-owned company ANCAP to bid on offshore wind blocksfor green hydrogen production. The tender will allow the winning bidder to assess conditions such as wind, tide, and geology for installing wind parks at sea. Uruguay has identified over 20 blocks, of which four (500 km²) will be tendered, capable of generating up to 3 GW of offshore wind power and producing 200 kt/year of green hydrogen. ANCAP will require a two-year work plan from bidders, and the selected company must submit a four-year plan, with an investment project or pilot by year eight, and a final investment decision before year ten. The project can receive a 25-year extendable concession. 

Financing

  1. The Kahiros project has created an investment of USD 38.6 million (EUR 35.5m).  
  2. The European Commission and the government of Uruguay have signed a declaration of intent for a EUR 2 million (USD 2.2 million) non-refundable contribution to assist in developing Uruguay's green hydrogen roadmap. This funding, provided through the EU's Euroclima program, aims to enhance the necessary capacity building for green hydrogen production, modify the regulatory framework, and execute a public awareness initiative. 

Government Green Hydrogen Lead

The roadmap is led by the Ministry of Industry, Energy, and Mining (MIEM) in coordination with other government agencies, including: 

  • Ministry of Environment (MA) for sustainability guidelines. 

  • Ministry of Economy and Finance (MEF) for economic and investment strategies. 

  • National Energy Directorate (DNE) for policy implementation. The roadmap also involves state-owned companies like UTE (electricity) and ANCAP (fuels) to support infrastructure and operational needs.