Solar power panels in the Atacama Desert, Chile
Hydrogen Market Databook 2025: Central & South America
Significant renewable energy potential is a great advantage for the region, but costs remain prohibitive
Central and South America has several potential advantages to building a hydrogen value chain and economy—the foremost of these being a vast amount of renewable energy. According to the IEA, 60% of the region’s electricity is generated from renewables (hydropower, solar and wind). This robust energy source is paramount to building new green hydrogen production capacity and infrastructure. However, the sheer cost of renewable energy builds, electrolyser installations, green hydrogen distribution networks and other infrastructure can be staggering. Many Central and South America nations are unable financially to build domestic hydrogen ecosystems and, much like Africa, they may need internatio
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