Peru

Peru has great potential to develop green hydrogen domestically with levelized cost of hydrogen dropping from 2.5-5 USD/kg in 2030 to 1.13 -1.6 USD/kg in 2050, approximately 1 GW electrolysers in 2030 to 13 GW in 2050 and supplemented with substantial renewable capacity additions of nearly ~21 GW by 2050 (5 ).

Peru has great potential to develop green hydrogen domestically with levelized cost of hydrogen dropping from 2.5-5 USD/kg in 2030 to 1.13 -1.6 USD/kg in 2050, approximately 1 GW electrolysers in 2030 to 13 GW in 2050 and supplemented with substantial renewable capacity additions of nearly ~21 GW by 2050 (5 ).

First estimation of the potential national demand for Green Hydrogen tons/year (6 )

H2 Peru, Peruvian Hydrogen Association were created an year ago in collaboration with multiple energy sector stakeholders and Peru government’s support to promote development of green hydrogen in the country. H2 Peru presented a roadmap to the Peruvian authorities, the key takeaways are highlighted below (7 ).

• Achieve a high level of self-sufficiency in H2V related products
• Develop the national industry and replace dependence on foreign products/inputs
• Develop the national industry and replace dependence on foreign products/inputs
• Generate an export market for green hydrogen, providing economic diversification, socioeconomic development, and innovation

1. 2025 - Paving the road
   • Work
     • Multisectoral working group coordinated by MINEM
     • Multisectoral working group coordinated by MINEM
     • Public Private Partnerships
     • International Research Cooperations

• Regulatory framework
  • Recognize the importance of H2V (Green Hydrogen) in climate change
  • Identify plan and execute studies of politics, regulations and incentives
  • Publication of procedure and regulations applicable
• Market opportunities
  • Tax incentives, substitution of fossil fuels and promote pilots
  • Positioning Peru as a potential exporter
  • Identify, articulate, and develop scalable pilots
  • Plan and execute 360-degree feasibility study of potential hubs

1. 2030 - Laying the foundations of the local market>
   • 1+ GW installed electrolysers
   • Hydrogen production cost 1.6 USD/kg
   • 20+ MSUD of financing to leverage scalable and replicable projects
   • 3000 MUSD of private investments in projects and research
   • Demand
     • At least 40% penetration of industry
     • Migration to sustainable transport
     • 50+ public transport vehicles
     • 2000-2500 light and heavy-duty cargo vehicles
     • 50 electric forklifts
     • 50-100 hydrogen generators for refueling
   • Certification and research
     • Online guarantee system with international standard
     • Public/private research centre in areas of demand and potential
     • Be able to incorporate into the national electromobility plan for vehicles with fuel cells
2. 2040
   • Promotion of industrial innovation towards H2V and exports
   • 6 GW installed electrolysers
   • Average target price: 1.3 USD/kg
   • 75% replacement of grey hydrogen at industrial level
   • 80% reduction in import of hydrogen derivatives
   • Having the infrastructure and ability to provide H2V for air traffic recharging
   • 2% injection into NG transport networks
3. 2050 – Large scale deployment
   • 12 GW + installed electrolysers
   • Average price target 1 USD/kg
   • 100% replacement of fossil fuels in steel and cement industries
   • Incursion into maritime transport

1. Wind - 20.5 GW
2. Hydro - ~70 GW
3. Geothermal - 3 GW
4. Biomass - ~1 GW
5. Solar – 260 GW & CSP – 136 GW (high insolation from 4.5 kWh/m2 to 6.5 kWh/m2) (10)

Not Available (NA)

MMEX: The Company has entered advanced discussions with Peru’s principal electric power distribution company to develop potentially a Green Hydrogen project to produce up to 55 tons per day of hydrogen, requiring 160 MWe of constant and certified renewable power load. The Company plans to use its Siemens Energy Electrolyzer FEED template and adapt it for Peru (11 ).