In Glasgow and within the framework of the United Nations COP26 conference against climate change, President Alberto Fernández met with executives of the Australian company Fortescue, which pledged to make a strong investment in Argentina, which will focus on production of green hydrogen for export. It is about US $ 8,400 million that the Argentine government describes as “the largest investment of this century.”
Fortescue Future Industries Global Director Andrew Forrest, whose partner is the former Puma Agustín Pichot in Latin America, also held a meeting in Glasgow with Chancellor Santiago Cafiero and Minister of Production Matías Kulfas. The investment plans to generate 15,000 direct jobs and at least 40,000 indirect jobs.
“In a short time our country will be able to become one of the world suppliers of this fuel to drastically reduce carbon emissions in the world,” said Fernández. “We are here for Argentina to be a leader in renewable energy and to be an exporter,” Forrest said.
Based on wind energy, the objective is to industrialize and export the winds of Patagonia. It is expected to achieve a production capacity of 2.2 million tons per year (or gigabytes) in 2030, which is equivalent to 10% of the electrical energy that Germany consumes in a year.
The project will be developed around the city of Sierra Grande, which has a history of iron ore production.
“The Fortescue company has just signed an important agreement to start selling this product, this new fuel of the future, which places Argentina among the main countries in the world to produce it “, explained the Minister of Productive Development, Matías Kulfas, who joined the official delegation in Glasgow and has been following the project for a year.
By 2028, the project has the potential to generate US $ 20,000 million in exports, key to reducing the current account deficit. “Argentina has a banking problem because it lacks investments and exports, this project provides both,” Kulfas said.
In November 2020, President Alberto Fernández had already held a meeting by means of a videoconference with representatives of the Fortescue Metals company, who had expressed their interest in investing in Argentina in the generation of renewable energies and the production of minerals in the framework of what they call green industry.
Pichot explained during a conference at COP26, where financing for the energy transition towards cleaner options is discussed, that they are already working to obtain financing through green bonds. “We are going to apply to all the lines that are available,” he told El Cronista.
The meeting also includes the secretary of International Economic Relations, Cecilia Todesca and the advisor to the Ministry of Productive Development, Marcelo Kloster, with the directors of Fortescue, Andrew Forrest (President), Julie Shuttleworth (CEO), Agustín Pichot (President for the Latin America Region), Todd Clewett (Senior Global Manager) and Sebastián Delgui (Regional Manager of Government and Communities for Latin America Region).
What is green hydrogen
Green hydrogen is a way to decarbonize the productive structure, “with a very positive impact to fight against climate change,” they explained from the government.
It has potential for heavy transport (eg trucks and ships) and long distance. Also for industries that consume a lot of energy, such as steel, cement, paper or fertilizers.
It is called “green” hydrogen because all the energy used to produce it comes from renewable sources. The announced project uses wind energy. This source will allow the use and transport of renewable energy that otherwise could only be used in the areas surrounding the generation.
Uruguay is also looking for investors
Uruguay’s Minister of Industry, Energy and Mining, Omar Paganini, will begin an official mission to several European countries this Tuesday The objective of this project is to present the H2U Uruguay Project to investors and state and private institutions, the program that will provide a framework for the development and production of green hydrogen in the country.
The official tour also includes representatives of Ancap, UTE, Uruguay XXI and a delegation of private entrepreneurs, what will they look for collaboration and partnership opportunities with agents specialized in the subject for the establishment of enterprises in the country, in addition to advancing in other initiatives that promote electric mobility.
“We are hoping to establish ties with private companies and state institutions that are already working on the development of hydrogen and electromobility. The purpose is publicize policies that we are putting into practice within the framework of H2U program, both to the European government institutions that implement support programs for this type of initiative, as well as at the private level, so that later this translates into concrete investments”Said Minister Paganini.
Germany it will be the first stop of the mission. There, companies from the energy sector will be visited and meetings will be held with local authorities and potential investors in the cities of Berlin and Hamburg.
Among the scheduled meetings, the minister will be received by the parliamentary secretary of state for the Ministry of Economy and Energy, Thomas Bareiss.
In addition, he will participate as an exhibitor and hold bilateral meetings with ministers of the region in the LAV Forum Americas Day 2021, which will take place in Hamburg on November 4 and 5 under the organization of the Chamber of Commerce of the host city.
The second stop will take the Uruguayan delegation to Paris, France, where Paganini will present the Uruguay hydrogen strategy within the framework of its second energy transition to the MEDEF International Task Force Hydrogen, a business forum focused on promoting private investment abroad in France, among other visits and business meetings.
The European agenda will continue in Netherlands, where a meeting is planned with the local Minister of Economic Affairs and Climate Policy, Stef Blok, meetings with potential investors and a visit to the port of Rotterdam, which is positioned internationally as the gateway to Europe for green hydrogen.
The government plans to launch the call for the first private pilot for green hydrogen production in the country by year-end, while advancing in negotiations with private parties interested in developing larger-scale projects targeting the export market.
With El Cronista-RIPE
