Latin America and Caribbean Hydrogen Market Report - 2025

Latin America and Caribbean is currently a minor player in the global hydrogen market, accounting for a 1% share of global active production capacity. The region does however have vast renewable potential which can be leveraged to produce cost-competitive low-carbon hydrogen and derivatives. However, overall greater policy support and incentives are required to mitigate the impact of the macroeconomic challenges in the region, such as high inflation, and encourage investment and demand in the industry.

Despite being a nascent industry within LAC, the region is being viewed as a future hotspot for green hydrogen production because of its vast renewable potential. Yet, significant investments into scaling renewable and hydrogen production capacity will be necessary to realize this opportunity.

Although the LAC region currently holds a small share of global active (1%) and upcoming capacity (8.9%), the region's hydrogen market has experienced a notable uptick in activity in recent years.

In terms of application areas, transport remains the dominant end-use industry for low-carbon hydrogen in LAC, with around 1.6mtpa of capacity expected to be allocated by 2030. Synthetic fuels are also emerging as a notable end-use industry, with 20 active and upcoming projects in the region.

Where previously LAC's hydrogen industry has been limited by a lack of clear policy support, gradually more countries in the region are proposing and implementing national hydrogen strategies and supporting funding initiatives to accelerate the development of low-carbon hydrogen production and foster growth in hydrogen market demand. Chile's Green Hydrogen Action Plan, Brazil's National Hydrogen Program, and Argentina's National Strategy for the Development of the Hydrogen Economy are all key examples of LAC countries' efforts to accelerate the development of respective low-carbon hydrogen industries.

Key Highlights

• Despite being a nascent industry within LAC, the region is being viewed as a hotspot for green hydrogen production due to its vast renewable potential.
• The region currently holds a small share of global active (1%) and upcoming capacity (8.9%).
• In terms of application areas, transportation remains the dominant end-use industry for low-carbon hydrogen in LAC, with around 1.6mtpa of capacity expected to be allocated by 2030. This reflects hydrogen's potential as a decarbonization solution for difficult-to-decarbonize sectors like long-distance transport.
• Synthetic fuels are also emerging as a notable end-use industry, with 20 active and upcoming projects in the region.

Scope

• Latin America and Caribbean (LAC) hydrogen in a global context
• Key regional projects
• Low-carbon hydrogen competitiveness drivers in LAC
• Leading countries in LAC for low-carbon hydrogen production
• Key companies and future leaders operating in LAC hydrogen market
• Intended use sectors for LAC hydrogen
• Hydrogen policies, strategies, and funding initiatives related to hydrogen in LAC
• Deal activity related to hydrogen in LAC
• Company filing analysis of LAC headquartered companies

Reasons to Buy

• Identify the market trends within the region and key players in hydrogen technologies.
• Develop market insight of current, in development and announced capacity and latest trends of the sector.
• Understand the region's different scenarios for 2030 based on the likeliness of the projects.
• Look at the demand in key application areas for the country.
• Facilitate the understanding on how and where the market is growing as it is rapidly scaling up to position as one of the main topics of the international and national agenda.