Francesco La Camera's opening remarks at the Green Hydrogen Forum in Latin America 2023
Bariloche, 18-19 May 2023
Ladies and gentlemen,
Distinguished guests,
It is a great pleasure for me to address you today on the outlook for global green hydrogen trade and the unique opportunities that this poses for Latin America.
According to IRENA’s 1.5 scenario, by the year 2050, hydrogen and its related products will account for 14% of the global final energy consumption.
Green hydrogen is fundamental for closing decarbonization gaps in sectors where direct use of renewable electricity is impractical or costly.
The world's appetite for hydrogen is projected to skyrocket, with global demand expected to increase from 100 million tons today, produced from fossil sources, to over 600 million tons by 2050 that should come from renewable sources.
Approximately a quarter of this demand has the potential for cross-border trade, with two-thirds facilitated through nearby hydrogen pipelines and the remaining one-third transported over long distances via shipping.
IRENA anticipates that hydrogen derivatives such as ammonia, methanol, or green steel will be the main forms of trade.
However, it is crucial that the production of hydrogen by 2050 comes from renewable sources.
The scale of this transition is immense, with the electricity needed for green hydrogen production in 2050 comparable to today’s global electricity consumption.
To meet this demand, electrolyzer capacity must grow from less than 1 GW to over 5700 GW by 2050, requiring substantial investments totalling an estimated cumulative 18 trillion USD by that time.
IRENA recognizes the substantial investments required across all energy transition technologies to meet the 1.5°C pathway.
That's why we're hosting the Latin America Investment Forum in Uruguay this November to help expand investment opportunities in the region.
I hope you will join us there.
Ladies and Gentlemen,
Latin America holds significant potential for abundant and low-cost renewable electricity, making it an ideal region for green hydrogen production.
Not only does the region have the potential to become a key global exporter, but there is also enough local demand.
Argentina, with its abundant renewable energy resources, has significant opportunities for the development of green hydrogen.
Yet, we must keep in mind that ambitious plans for green hydrogen production must be matched with ambitious plans to substantially increase capacity to generate renewable electricity.
Improvements must also be made to electricity infrastructure, and bunkering ports for synthetic fuels need to be built.
When it comes to trade, certification is vital for the hydrogen industry. Ensuring compliance with standards and regulations to verify sustainability criteria differentiating green hydrogen from environmentally damaging options.
Moreover, certification and standardization are crucial for countries aiming to export hydrogen to major markets like the European Union, Japan, and Korea.
Aligning with these standards ensures smooth market access and meets high consumer expectations.
National strategies must be translated into local regulations that govern the use of green hydrogen across industries and facilitate trade.
This requires collaboration between public, private, and non-state actors.
Public entities play a key role by setting targets, developing robust strategies, and implementing regulations that create a conducive environment for the widespread adoption of green hydrogen.
The private sector plays a critical role in developing innovative business models, particularly in the fertilizers market.
Furthermore, the engagement of non-state actors is vital to ensure local communities directly benefit from the energy transition through new job opportunities, capacity building and decision making at the community level.
IRENA is engaged globally to tackle some of these issues, and we continuously strive to foster greater collaboration through initiatives such as our Collaborative Frameworks, Coalition for Action, and the Alliance for Industry Decarbonization.
Many of you in the room today are actively shaping and engaged in these initiatives already but for those government and industry representatives that are not – I reiterate IRENA’s invitation for you to join us.
Thank you for the invitation and I extend my gratitude for your attention.
I wish everyone a productive and successful conference as we collectively strive towards a greener and more sustainable future.
Thank you once again.