Market Overview

The Latin America green hydrogen market size reached USD 101.28 Million in 2024. It is projected to grow significantly and reach USD 3,240.40 Million by 2033, with a compound annual growth rate (CAGR) of 46.97% during the forecast period 2025-2033. This growth is driven by favorable government incentives, increasing foreign investments, and advancing electrolyzer technologies, among other factors.

Study Assumption Years

  • Base Year: 2024
  • Historical Period: 2019-2024
  • Forecast Period: 2025-2033

Latin America Green Hydrogen Market Key Takeaways

  • The Latin America green hydrogen market size was USD 101.28 Million in 2024.
  • The market is expected to grow at a CAGR of 46.97% during 2025-2033.
  • Forecast period spans from 2025 to 2033.
  • The Chilean government launched the "Green Hydrogen Action Plan 2023-2030" to advance green hydrogen production and achieve carbon neutrality by 2050.
  • Latin America is leveraging abundant solar and wind energy resources, notably in Chile and Brazil, for green hydrogen production.
  • Increasing foreign investment and supportive regulatory frameworks are boosting sector growth.
  • Emerging electrolyzer technologies and rising corporate sustainability commitments contribute significantly to market expansion.

Sample Request Link: https://www.imarcgroup.com/latin-america-green-hydrogen-market/requestsample

Market Growth Factors

Latin America's green hydrogen sector thrives due to governments implementing favorable policies, increasing environmental awareness, and growing demand for renewable energy. For example, on 25 April 2024, the Chilean government acted to launch the "Green Hydrogen Action Plan 2023-2030," seeking to increase green industries and become carbon neutral by 2050. Latin American countries create policies and incentives that draw in green hydrogen projects. Some countries may have a more favorable market outlook.

Second, renewables potential is large. In 2023, Latin America should demand 24.8-27.4 GW of photovoltaic solar, and Chile together with Brazil will likely account for most of that demand in it. In northern Chile, the Atacama Desert has some of the highest solar irradiation in the world. This irradiation has been deemed suitable for electrolysis to produce green hydrogen. Brazil has meaningful solar energy generation potential, and is home to some of the largest wind power generation capacity in the world.

Thirdly, there is substantial new foreign investment, diverse electrolyzer technologies such as proton exchange membrane and alkaline, along with innovations in production processes, making this technology more economically viable. This has led to the region becoming an exporter of green hydrogen. The regulatory environment in Latin America, as well as corporate sustainability agendas, has allowed for the acceleration of green hydrogen technology.

Market Segmentation

Technology Insights:

  • Proton Exchange Membrane Electrolyzer: This technology involves using a proton-conductive membrane to generate green hydrogen by electrolysis.
  • Alkaline Electrolyzer: A widely used technology where alkaline solutions facilitate the electrolysis process.
  • Others: Includes other emerging or less common electrolyzer technologies contributing to green hydrogen production.

Application Insights:

  • Power Generation: Utilization of green hydrogen for producing electricity.
  • Transport: Adoption of green hydrogen as a clean fuel in the transportation sector.
  • Others: Other miscellaneous applications of green hydrogen beyond power and transport.

Distribution Channel Insights:

  • Pipeline: Distribution of green hydrogen through pipeline infrastructure.
  • Cargo: Transportation of green hydrogen via cargo means, such as tankers.

Country Insights:

  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Chile
  • Peru
  • Others

Regional Insights

Brazil and Chile are identified as dominant countries in the Latin America green hydrogen market due to their exceptional renewable energy resources. The Atacama Desert in Chile offers high solar irradiation levels, while Brazil is notable for its large wind power capacity. These conditions enable large-scale, low-cost green hydrogen production, contributing significantly to the market’s anticipated robust CAGR of 46.97% during 2025-2033.

Recent Developments & News

On April 18, 2024, Linde announced that its subsidiary, White Martins, will construct, own, and operate a second electrolyzer in Jacareí, São Paulo, Brazil. This five-megawatt pressurized alkaline electrolyzer plant will produce green hydrogen powered by renewable solar and wind energy. On October 1, 2024, Vale and Green Energy Park (GEP) agreed to collaborate on exploring green hydrogen production opportunities in Brazil, marking strategic advancements in the region’s green hydrogen sector.

Key Players

  • Linde
  • White Martins
  • Vale
  • Green Energy Park (GEP)

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

About Us

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.