The southernmost province of Argentina has become the chosen location for large renewable energy projects following an energy discovery that includes green hydrogen, blue hydrogen, and wind energy as the most important ones.
The hydrocarbon resources available in the province foreshadow the expansion of the national energy matrix towards sustainable sources.
Energy Discovery in Tierra del Fuego
Southern Argentina boasts large reserves of natural gas, an ideal infrastructure to expand its potential, and a strategic location with access to the sea for global export. All of this suggests fertile ground for the development and production of blue hydrogen.
In this context, the government of Tierra del Fuego has launched a Strategic Plan to boost the production of blue hydrogen, with the participation of companies like TotalEnergies, which already plays a prominent role with green hydrogen, wind transition, and carbon storage in the area.
Significance Highlighted at COP26
During the COP26 Climate Conference, the importance of Argentine soil was highlighted, especially the participation of the southernmost province of the continent due to the quality of its resources, strategic position, and technology to expand its production.
Memorandum of Understanding with CWP Global
The province has signed a Memorandum of Understanding with CWP Global, announcing investments coming to Tierra del Fuego. “The agreement aims to mitigate the effects of climate change by generating low-carbon energies, such as wind and blue and green hydrogen,” as announced by the provincial government on the social network X.
Southern Cone Energy will analyze the viability of these projects, fostering a conducive environment for investment and development in line with international standards.
Locations and Initial Phases
Four locations spanning between 1500 and 3000 square kilometers have been selected for the company’s installation, divided among the Golfo San Jorge, Santa Cruz, and Río Grande. The works are in the early stages of environmental impact assessment and technical analysis.
Once operational, the project will offer around 2.4 million tons per year of green hydrogen, including the generation of wind energy, electrolysis, water desalination, and ammonia plants, all with the technology and infrastructure suitable for production.
Implications of the Memorandum
Following the signing of the agreement, the province’s Energy Minister, Alejandro Aguirre, stated, “We are beginning to outline the guidelines for the development of green hydrogen with the world’s largest business group that develops these types of projects.”
He also emphasized the need to “analyze the macroeconomic context and link long-term projects with some intentions of the National Government to establish legal security through the Regime of Incentives for Large Investments.”
Long-Term Projections
Aguirre highlighted that the project stemming from this energy discovery will bear fruit in the long term, mentioning that “one of the things that must be worked on in national legislation is the development of these new energies, focusing on infrastructure and environmental issues. The port of Río Grande is a trigger to position the city as an import center.”
It is estimated that the establishment and development of the blue hydrogen vector will take about 5 to 6 years, extending the expansion of renewable energies in the south of Argentina for up to 15 years.
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