The European Commission is looking to offer Argentina €200m of funding to develop its green hydrogen industry in a bid to secure a future supply of the energy carrier.
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Speaking at an EU-Argentina energy dialogue, Energy Commissioner, Kadri Simson, told officials renewable hydrogen would be a sector to benefit from the EU’s €45bn Global Gateway Investment Agenda.
It comes after the EU and Argentina signed a Memorandum of Understanding (MoU) to step up cooperation on renewables, hydrogen and more last year.
“I am here in Argentina to follow up on these commitments,” Simson said. “We don’t come empty-handed. This memorandum is backed by a solid investment package.”
The Commissioner told officials the EU was looking at how it could replicate a €200m funding scheme being rolled out in Chile.
Launched in 2023, the €225m Fund for Renewable Hydrogen in Chile is hoped to tackle domestic liquidity issues and capitalise on its export potential, led by the European Investment Bank (EIB) and German development bank KfW.
Simson stressed Argentina’s green hydrogen production potential and the EU’s future demand.
“We are capable of so much more together,” the Commissioner claimed. “We see so much potential for Argentina to position itself as a lead in green energy and climate solutions. And I want to be clear in underlining the EU’s readiness and interest in working closely with you as we go down this path.
“In the coming years, we’re set to become a huge demand centre for renewable hydrogen.”
Europe is increasingly placing its future green hydrogen supply bets on imports, with various studies suggesting regions with far lower renewable energy prices could provide more cost-competitive hydrogen despite transport costs.
A key arm of the EU’s REPowerEU hydrogen plans is its 2030 goal of importing 10 million tonnes of renewable hydrogen, in addition to the 10 million tonnes of domestic production.
In the latter months of 2023, the EU had been establishing and exploring partnerships with regions predicted to boast high hydrogen production potential as it looked to secure supply.
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