The Potential of Hydrogen in Argentina

In addition to lithium, Argentina has the potential to become a powerhouse in the production of green hydrogen.

This gas also represents an opportunity to lead the energy transition. It can be used as fuel for vehicles and heavy industries and to store energy generated from sustainable sources.

Argentina is one of the countries with the largest lithium reserves, a metal needed for batteries in vehicles that will help accelerate the energy transition. However, it is not the only technology in which the country could lead the fight against the climate crisis.

It could also become a leader in hydrogen production, another energy vector that can replace fossil fuels, the combustion of which is responsible for global warming.

'Hydrogen is a component that can decarbonize part of the economy, unlike batteries. Large-scale energy storage in batteries is very difficult, and therefore hydrogen has become a great alternative for storage and for replacing fossil fuels,' says Gabriel Correa, researcher at the Regional Center for Energy and Environment for Sustainable Development (CREADS), Conicet, and the National University of Catamarca.

There are three functions hydrogen can serve in order to accelerate the energy transition:

1. Fueling vehicles: Vehicles powered by fuel cells require hydrogen to fuel electric motors. In other words, instead of lithium batteries, cars would use this alternative technology. In any case, the operation does not emit gases responsible for reheating and contaminating the atmosphere. The advantage of hydrogen is that it is a more abundant resource than lithium. It can also be used as an input for producing e-fuel (ecological fuels) that can power combustion engines.

2. Renewable energy storage: Hydrogen can be used as a vector to store energy produced from renewable sources such as solar and wind. When energy surpluses are generated during periods of low demand, this excess can be used to produce hydrogen through water electrolysis. The stored hydrogen can then be used to generate electricity when demand is high.

3. Decarbonizing hard-to-electrify sectors: Some industries use fossil fuels for production. Due to its calorific power, hydrogen could replace natural gas needed for boilers and foundries, among other links in the production chain. The combustion of hydrogen does not generate carbon dioxide.

Hydrogen's Impact in the Fight Against Climate Change

The International Renewable Energy Agency (IRENA) estimates that hydrogen could contribute 10% of the necessary mitigation to achieve the 1.5°C global temperature increase scenario. In that case, hydrogen could cover 12% of final energy demand. (https://www.irena.org/Energy-Transition/Technology/Hydrogen)

'While energy efficiency, electrification, and renewable energies can achieve 70% of the necessary mitigation, hydrogen will be needed to decarbonize end uses where other options are less mature or more expensive, such as heavy industry, long-distance transport, and seasonal energy storage,' the agency's report points out.

Low-Emission Hydrogen Production

Currently, hydrogen is produced as an input for industries, but most of it is generated from natural gas or other fossil fuels. The expectation is that Argentina can produce low-emission hydrogen. There are various types, which are distinguished by colors:

• Green hydrogen is obtained from renewable energy sources such as the sun and wind.

• Pink hydrogen is obtained from nuclear energy.

• Blue hydrogen uses natural gas but is complemented with carbon capture, storage, and usage technologies (CO2). If there is no gas capture, it is called gray hydrogen and is no longer considered low-emission.

Argentina's Potential

The 2023 report from the National Strategy for the Development of the Hydrogen Economy (ENH) points out that Argentina has several advantages that position it as a potential producer of low-emission hydrogen for both domestic consumption and export (https://www.argentina.gob.ar/asuntos-estrategicos/estrategia-nacional-para-el-desarrollo-de-la-economia-del-hidrogeno-0#:~:text=La%20Estrategia%20Nacional%20para%20el,como%20insumo%20para%20la%20industria)

According to ENH, the focus should be on the potential for green hydrogen production using solar sources in Cuyo and the Northwest, and wind energy in Patagonia.

But these are not the only resources. Argentina's scientific system has more than 17,000 professionals in applied sciences. An example of this is Correa's group, which, together with colleagues from the National University of Córdoba (UNC) and Conicet, has already built the country's first 5 kW electrolyzer prototype. The electrolyzer uses renewable electric energy to break down the water molecule (H2O) and produce hydrogen. (https://www.unc.edu.ar/ciencia-y-tecnolog%C3%ADa/se-present%C3%B3-en-la-secyt-el-primer-electrolizador-desarrollado-en-el-pa%C3%ADs-para)

The country also has experience in some industries whose techniques would be very useful in the hydrogen chain. Argentina already has two experimental hydrogen production plants: Hychico, in Chubut, and Pico Truncado, in Santa Cruz. The latter produces green hydrogen.

Furthermore, progress is being made in regulations. In June 2023, the National Executive sent a bill for the Promotion of Low-Emission Hydrogen to Congress, with a 30-year time frame. It includes tax benefits throughout the entire production chain and protection for the national industry and labor force.

How Much Hydrogen Can Argentina Produce

Currently, Argentina produces 0.4 Megatonnes (Mt) of gray hydrogen. The ENH report predicts that the country can produce 1 Mt of low-emission hydrogen by 2050. It estimates that over 82,000 jobs could be generated by that year.

In fact, Argentina's potential to produce green hydrogen is as great as its ability to produce energy from renewable sources. A 2015 study by researchers at the Renewable Energy Lab (LAES) at UNC calculated the potential hydrogen production from the three most important renewable energies available in the country: wind, solar, and biomass. (https://linkinghub.elsevier.com/retrieve/pii/S0360319914008490)

According to this study, if only 10% of the land suitable for renewable projects was used, it would be enough to replace all of Argentina's fuel imports for transportation at that time. That is, the country could potentially produce 10 times the energy it needs to buy from abroad.

Environmental Challenges of Green Hydrogen

Despite being a sustainable way to store and transport energy, hydrogen presents environmental challenges. For example, pink hydrogen involves the controversy surrounding nuclear energy, while blue hydrogen, although it captures the CO2 emitted, is still prone to methane leaks during natural gas extraction.

What about green hydrogen? It is the most sustainable way to produce it, but it has its environmental challenges. The main one is the need for a significant water source. In some cases, seawater is used, which is desalinated beforehand.

There can also be an environmental impact associated with building infrastructure, such as wind farms or solar plants. Another challenge is how to transport this gas safely from generation sites to demand sites.

Finally, the electrolyzers and fuel cells that will be part of the hydrogen chain will require the extraction of scarce and potentially polluting minerals and metals.

In this regard, ENH has launched a Strategic Environmental Assessment (EAE) to align production goals with environmental objectives, while also providing greater certainty to potential investors. 'The implementation of this tool is consistent with Argentina's adherence to the Escazú Agreement,' the document states.