Postgraduate Engineering

Argentina's opportunity in the global energy transition market

18.06.2024

Author: Postgraduate Engineering

The Postgraduate Studies Department of the Faculty of Engineering, in conjunction with the Energy Institute, organized a webinar on hydrogen to discuss the challenges and opportunities facing Argentina. Three specialists on the topic participated: Marina Paradela, Esq., Chance and Choices SL, Chao Solutions; Griselda Lambertini, Esq., Academic Director of the Center for Studies of Energy Regulatory Activity (CEARE) at the University of Buenos Aires; and Sebastián Otero, MBA, Portfolio Manager, Pampas Project, Fortescue Energy. The moderator was Roberto Carnicer, M.A., Director of the Energy Institute and the Master's Program in Gas and Oil Management. Universidad Austral. 

Hydrogen has the ability to combust without releasing greenhouse gases. For this reason, it is one of the technologies chosen by the world for the energy transition.  

Attorney Marina Paradela shared an introduction on the importance of developing the hydrogen market and why it is a great opportunity for our country.  

The term "green hydrogen" is used to identify one of the ways to produce this element. The color is determined by its production method, specifically whether it resulted in a higher or lower carbon footprint or emissions. This is why the color distinction exists. Currently, 95% of hydrogen comes from fossil fuels without emissions capture, and is identified as gray hydrogen. This is followed by blue hydrogen (derived from natural gas, but with emissions captured) and green hydrogen, which is produced through electrolysis . This process involves using an electrolyzer to which energy, preferably renewable, is applied. This electricity is then applied to water, where it is separated into H2O.

Why Argentina is a prime location for exporting hydrogen 

While Argentina has other excellent energy sources for the energy transition, hydrogen is crucial because the world projects a significant demand for this gas. Countries have already begun developing their national hydrogen strategies; Europe, in particular, has set a 2030 target, which anticipates that hydrogen will be imported. Why? Because generating wind and solar energy requires vast areas, which is why many countries are looking to Argentina. Our country is one of the most advantageous in the production of hydrogen derivatives such as ammonia, methanol, and other synthetic fuels. The plan, therefore, is to export these derivatives, since hydrogen requires a significant amount of energy to cool down and be transported.

A major challenge: environmental certifications 

Attorney Griselda Lambertini shared with attendees the importance of having a global certification system. In this regard, it is necessary to guarantee sustainability certification (the main attribute of sustainability being greenhouse gas emissions) and a guarantee of origin (which provides evidence of the sources and production methods). Currently, there are different certification systems established and under development in each region or country. This presents a challenge because there is no global standardization of certification for operation in other countries. For a hydrogen market to exist, there must also be a fluid market for certifications.

Strategic environmental assessment. Of the total hydrogen projected to be produced by 2050, 80% is estimated to be for export, across the entire hydrogen derivatives chain. “Those who need it to comply with their standards and regulatory frameworks will buy it from us, but without a certification system there will be no production or marketing,” stated Attorney Griselda Lambertini.

 

What projects are currently underway?  

To close the meeting, Sebastián Otero highlighted the commitment of an Australian company, Fortescue, which is undertaking various decarbonization initiatives using innovative, CO2-free technologies. A prime example is the Green Green Pioneer, the first dual-fuel vessel capable of using green ammonia.

As can be seen, a new hydrogen market is taking hold globally, with countries emerging as importers or exporters and projections indicating that hydrogen will become a global commodity in the coming years. In this context, the Energy Department of the Faculty of Engineering offers postgraduate programs aimed at training professionals interested in this sector. Argentina has significant potential to become an essential source of foreign exchange through the development of diverse energy sources. 

We invite you to explore the Energy area and the various postgraduate programs that are about to begin: Go to the website.

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