No one is oblivious to the almost urgent need for an energy transition. While the world is shifting towards the generation of green energies, Argentina has a historic opportunity: not to be a mere spectator of a necessary global phenomenon that will yield benefits beyond the environmental, the hydrogen market. With enormous amounts of natural resources and a demand that exceeds supply, the Argentine Republic must enter the fray of the global energy matrix.
In this scenario filled with opportunities, Chubut stands out as one of the provinces of excellence to guide the Nation in this global transition. With the best wind yields, Chubut's wind energy becomes a wildcard for hydrogen production and its fundamental role in the decarbonization of planet Earth due to its use as fuel in cars, transport trucks or -potentially- airplanes.
However, for Argentina to establish itself as a global protagonist of this green phenomenon, we must undergo the arduous process of understanding how to manage and project it without neglecting the fundamental role of the public and private sectors as guarantors of the transition.
The potential of hydrogen in the country.
Argentina has a combination of natural resources that position it as a key player in the green hydrogen market. Its 2,795,993 km2 of territorial extension, the abundance of renewable energy, and extraordinary wind potential give it competitive advantages over neighboring countries or major powers from other continents.
To produce green hydrogen, it is necessary to separate the water molecule through electrolysis, a process that requires clean energy. At this point, Chubut has one of the best wind yields in the world that can feed large wind farms generating the clean energy needed to obtain green hydrogen.
And what about water? Currently, the sweet water resources in the province are heavily exploited, so they are not an option. However, with 1,200 kilometers of coast along the Atlantic, Chubut has a clear alternative: desalination. The construction of new and better desalination plants would not only provide the necessary water for green hydrogen production but would also help solve the historic supply problem in many provincial towns.
Globally, the demand for green hydrogen is growing. Countries like Germany, Japan, and South Korea are seeking sustainable alternatives to eliminate their dependence on fossil fuels, making Argentina a potential strategic exporter. Moreover, the development of this industry would bring direct economic benefits: job creation, infrastructure investments, and the diversification of the national productive matrix.
However, this potential will only be realized if the country can advance in a clear regulatory framework, adequate infrastructure, and macroeconomic stability that provides predictability for private investors to decide to invest in the southern province. Chubut already has the resources; what is missing is political will and proper planning to turn this opportunity into reality.
The decisive role of Chubut
If there is a province in the vast Argentine Republic that should lead the development of green hydrogen, it is Chubut. Its biggest competitive advantage is its true inexhaustible resource: wind.
Chubut is at the epicenter of the wind phenomenon of Patagonia, one of the regions with the best wind quality that far exceeds the global average, turning this energy form into the necessary engine for hydrogen production.
The province already has energy infrastructure that could be leveraged to accelerate the transition. Wind farms like the one in the city of Rawson, the largest in Argentina, or Madryn have demonstrated the viability of generating clean energy on a large scale. However, they will be of little use in boosting the green hydrogen market if solutions to topics like expanding electric transport capacity and efficient storage are not found.
In other words, Chubut would not be starting from scratch with the "green" topic, which would be its main advantage. But the challenge is tied to that experience: transforming that already installed capacity into the new global platform for green hydrogen, generating added value and local employment, both direct and indirect, in the process.
Barriers and challenges
Despite its enormous potential, the green hydrogen industry in Argentina faces obstacles that must be resolved to achieve its expansion. The first and most urgent is the lack of a clear regulatory framework.
In 2006, National Law No. 26,123 for the promotion of hydrogen was enacted. However, it was never promulgated, and the implementing authority was never conceived, leading it to lose parliamentary status in 2021. Since then, few political figures have dared to speak on the topic again.
Without clear rules, no board game is fair. The lack of legislation that sets standards and incentives makes attracting private companies an almost impossible task when neighboring countries like Chile and Uruguay have already advanced with very firm steps in national projects and strategies to promote the production of green hydrogen in their respective territories.
Another key challenge is investment in infrastructure and technology. The production, storage, and transportation of green hydrogen require specific developments, such as large-scale electrolysis plants and ports adapted for export. Without the right incentives, the private sector is unlikely to take on the risk of executing these projects.
Finally, no energy plan can thrive without macroeconomic stability. The volatility of the country, with rules that change from government to government, eliminates the interest of investors in our Nation and directs attention to other clearer and more competitive countries.
Without a serious and sustained commitment over time, the opportunity that Argentina has today could end up being seized by other countries with greater planning capacity.
Chubut must follow a single path.
The world is heading towards a specific destination with no deviations in between: green energies will be the norm and not the novelty. Our country has all the natural resources to be the protagonist in this scenario, and Chubut, in particular, has conditions that are hard to surpass by other national territories to become the national, continental, and almost-global banner of green hydrogen.
But mere enthusiasm is not enough; we need clear public policies, strategic investments, efficient management, and people willing to have the discussions that will allow us to stop dreaming and start doing.
It is urgent for the country to define a national strategy that marks the course, builds confidence, and is truly federal. Chubut will not wait for the solution to come from the Autonomous City of Buenos Aires: it must take the reins of the matter, attract private investors, and establish itself as a model of sustainable development.
The cards are on the table. Will they dare to play or prefer not to risk losing?
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