Argentina boasts a wide variety and availability of natural resources, including 53 percent of agricultural land, abundant reserves of oil, gas, minerals, and water, and optimal conditions for the development of wind, solar, biomass and hydro power. (1)
The country possesses the world's fourth-largest shale oil and second-largest shale gas reserves.Natural gas represents about 52 percent of Argentina's primary energy source, and although the country features as one of the world’s largest shale gas deposits, it relies on liquified natural gas (LNG) imports to meet their domestic demand. (2)
Argentina has only ~10 percent contribution in electricity supply via renewable energy with only 1.1 GW of solar and 3.3 GW of wind installed capacity in 2022. (3) Argentina is targeting a share of renewables of at least 20 percent of total electricity consumption by 2025.
According to the government, Argentina can produce over 1 MT/year of green hydrogen by 2030. Currently, Argentina produces ~400,000 tons of grey hydrogen annually(5) .Argentina shows the third highest technical Power-to-X (PtX) potential in the world with respect to land availability (hybrid projects - ~154,000Km2) and access to freshwater, the total availability of ~6,000 hrs/annum for hybrid projects for electrolysis (6) .
Currently, the country produces ~400,000 tons/per year of grey hydrogen. The demand is met through domestic produced hydrogen and only 2 percent of it is marketed. Only 0.3 percent is used for power generation (7)
Argentina's Hydrogen Promotion Act 2006 gives considerable tax benefits for fifteen (15) years to promote the production, use and applications of hydrogen, such as: a) early refund of value added tax when buying, manufacturing, elaborating, or importing capital goods; b) accelerated amortization for income tax purposes; c) exemption from minimum presumptive income tax; d) exemption from liquid and natural gas special tax (8)
In June 2022, the Argentine government developed the2030 National Low-Emission Hydrogen Strategy, in collaboration with the private and academic sectors, to promote public-private collaboration, investment in science and technology, and industrial participation, among other initiatives for the deployment of this energy vector.
Objectives and impact targets
Not Available (NA)
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