12 Insights on Hydrogen – Argentina Edition IMPULSE 12 Insights on Hydrogen – Argentina Edition PUBLICATION DETAILS IMPULSE 12 Insights on Hydrogen – Argentina Edition WRITTEN BY Agora Energiewende www.agora-energiewende.de info@agora-energiewende.de Agora Industry www.agora-industry.org info@agora-industrie.de Anna-Louisa-Karsch-Straße 2 10178 Berlin | Germany P +49 (0)30 700 14 35-000 Fundación Torcuato Di Tella Esmeralda 1376 | 1007 Ciudad Autónoma de Buenos Aires, Argentina T +54 11 5169 7000 http://ftdt.cc mc@itdt.edu PROJECT MANAGEMENT Fabian Barrera fabian.barrera@agora-energiewende.de AUTHORS Fabian Barrera (Agora Energiewende); Luciano Caratori, Micaela Carlino, Hernán Carlino (all Fundación Torcuato di Tella) Typesetting: Karl Elser Druck GmbH Proofreading: WordSolid Title picture: Bruno De Regge I Unsplash This work is licensed under CC BY-NC-SA 4.0. ACKNOWLEDGEMENTS / MISCELLANEOUS We wish to thank the following colleagues for their contributions in various ways: Matthias Deutsch, Leandro Janke, Zaffar Hussain, Camilla Oliveira, Emir Çolak (all Agora Energiewende). We also wish to thank the PtX Hub partners for their contributions and reviews: Veronica Chorkulak, Stephan Remler, Claudia Ilting, Manuel Andresh, Sonia Rueda, Nelly Eisenbach (all GIZ); National direction of scenarios and evaluation of energy projects by the Undersecretary of energy planning at the Secretariat of Energy of Argentina, Luisa Lopez (DECHEMA), Raul Bertero (CEARE) The International Power-to-X Hub is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Affairs and Climate Action (BMWK). Financed by the International Climate Initiative (Internationale Klima­ schutzinitiative, IKI), the PtX Hub is a contribution to the German National Hydrogen Strategy of 2020 and represents one of the four pillars of the BMUV’s PtX action programme initiated in 2019. 294/02-I-2023/EN Version 1.1, June 2023 This publication is available for download under this scan code. Please cite as: Agora Energiewende, Agora Industry, Fundación Torcuato Di Tella (2023): 12 Insights on Hydrogen – Argentina Edition www.agora-industry.org Preface Dear reader, The role of renewable hydrogen is getting more and more attention in the global pursuit of climate neu­trality. The trading potential of hydrogen and its derivatives, combined with the important social and economic benefits of a hydrogen economy, is bringing new players into the hydrogen game. In addition, the global fossil fuel crisis has underlined the need for new energy suppliers and a more diverse industrial market, shifting the spotlight on renewable-rich countries. need to be carefully analysed. Energy infrastructure development, the use of natural gas, certification, and in­vestment needs are among the hot topics currently being discussed at the national level. This brief study aims to contribute to the discussion on the priorities and next steps that are part of the decision-making process to maximise the local bene­fits of scaling up renewable hydrogen production in Argentina. We also highlight the significant con­tri­ bution to the global decarbonisation that the country’s potential export of green products can make. I wish you a pleasant and informative read. Argentina has vast energy resources that position it as one of the potential future exporters of renewable hydrogen and Power-to-X (PtX) products. However, when embarking on the road to becoming one of the world’s hydrogen hubs, certain aspects Yours sincerely, Frank Peter Director, Agora Industry Key findings at a glance: 1 Renewable hydrogen will be crucial for reaching climate neutrality; however, it should be reserved for applications where direct electrification is not possible. Argentina’s national hydrogen strategy, currently being drafted, should prioritise the use of hydrogen in key sectors such as industry, ship­ ping, and aviation, and in providing flexibility to a renewable-based power system. For other use cases, direct electrification is usually more economic and efficient. 2 Argentina is well-positioned to become a major global producer of hydrogen due to its vast energy potential. Argentina’s renewable energy resources can produce cheap electricity that can be con­ verted into renewable hydrogen. Natural gas with carbon capture and storage could be used as a bridge technology but should be switched to renewable hydrogen as soon