When hydrogen gained traction in the late 2010s, Latin America was identified as a region with high growth potential. The region already generates a high percentage of its electricity from renewable energy (mainly hydropower), it has significant solar photovoltaic (PV) and wind potential that could be exploited, and production costs are forecasted to be globally competitive. European countries moved to sign partnership agreements with key countries, and while export to the United States is a potential business opportunity, progress has been slow. The global hydrogen industry has since lost momentum, in part because of the change in the administration in the United States, but also because cost reduction has proved to be a challenge throughout the value chain globally. This analysis focuses on five key country segments: Argentina, Brazil, Chile, Colombia, and Mexico. Of these, Brazil and Chile lead the pack. Brazil benefits from the size of the country, giving it a wide industrial profile that can benefit from hydrogen. The absence of a clear hydrogen production target is the largest restraint for the country. Chile has a relatively high penetration of electricity from wind and solar PV, and substantial investment potential to take this higher. Clear certification would improve its score. Beyond these two countries, the prospects diminish. Colombia has a high penetration of renewables but faces wider political internal challenges. Mexico and Argentina will remain heavily dependent on natural gas as part of their energy mix and have introduced almost no supportive policies.

• What growth opportunities can Latin America capitalize on in the hydrogen industry amid shifting global policy priorities and persistent cost-reduction challenges?
• What role can clear hydrogen production targets play in overcoming Brazil’s policy uncertainty and driving industry growth?
• How can Chile leverage its strong wind and solar PV penetration and untapped investment potential to accelerate renewable hydrogen production?