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It is envisaged that the pair could start produc- transportation sector as a good candidate for
tion at pilot projects in 2024, according to a draft hydrogen-based decarbonisation initiatives.
of the ministry’s strategy. “Compared to batteries, hydrogen is better
Europe’s end-goal is green hydrogen, how- suited for the light- to heavy-duty transportation
ever, with the EU viewing other types of non-re- sector, due to its much better energy-to-weight
newable hydrogen as only transition fuels. Russia ratio. In this sector, weight and volume are at a
therefore has only a limited window for estab- premium,” he told Latin America Advisor.
lishing hydrogen exports, but it be could locked
out of the market eventually. If you’d like to read more about the key events shaping
Latin America’s oil and gas sector then please click here
If you’d like to read more about the key events shaping for NewsBase’s LatAmOil Monitor.
the former Soviet Union’s oil and gas sector then
please click here for NewsBase’s FSU Monitor . Riyadh’s maiden blue ammonia shipment
The world’s largest oil producer is pushing hard
Latin American potential to take a leadership position in the nascent
The International Energy Agency (IEA) identi- hydrogen sector. This week it shipped a consign-
fied Chile as a potential future source of low-cost ment of 40 tonnes of blue ammonia generated
green hydrogen in its recent Energy Technology from hydrocarbons to Japan under a collabora-
Perspectives 2020 report, and officials in Santi- tive study between Saudi Aramco, SABIC and
ago appear to be keen on this possibility. the Institute of Energy Economics Japan (IEEJ).
In late August, Chilean Energy Minister Juan While the cargo is small, it is an important Chile is not
Carlos Jobet told the Financial Times that his first step in proving the premise and will facil-
country might be in a position to export $30bn itate zero-carbon power generation for Japan, the only Latin
worth of green hydrogen by 2050, thanks to its where it will be used in gas turbines and a co-fir- American state
decision to invest heavily in solar power genera- ing boiler. Meanwhile, Aramco and SABIC have
tion capacity. This is equivalent to Chile’s current taken the CO2 generated for use in enhanced eyeing green
earnings from copper exports, Jobet noted. oil recovery (EOR) and methanol production
But Chile is not the only Latin American respectively. hydrogen projects
state eyeing hydrogen projects. Ana Angel, Latin For Saudi Arabia, the move illustrates the
America manager at the Hinicio consultancy, kingdom’s efforts to use hydrogen to diversify its
noted earlier this year that there was wide inter- economy following the summer announcement
est in the region. “Latin America has pilot pro- of a deal to construct the world’s largest hydro-
jects in Costa Rica and Argentina [and] projects gen facility at the new $500bn NEOM smart city.
in an advanced state of development in Chile and This is being built by a collaboration of NEOM,
Uruguay, as well as great interest from energy ACWA Power and Air Products and will lever-
and hydrocarbon companies in Colombia,” she age 4 GW of solar and wind power to create 650
told Latin America Advisor. tonnes per day of green hydrogen, which will be
Some of these pilot projects are being carried converted into 1.2mn tonnes per year (tpy) of
out by the Costa Rican Hydrogen Alliance, a green ammonia.
group of private- and public-sector companies Elsewhere in the Middle East this week,
representing every link in the green hydrogen independent operators Genel Energy and Gulf
value chain. Jose Antonio Castro Nieto, chief Keystone Petroleum both reported receiving
scientist at Costa Rica’s Ad Astra Rocket, said payment for August crude sales from the Kurd-
that the alliance saw the light- to heavy-duty istan Regional Government (KRG).

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