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Latin American countries are promoting domestic use of clean hydrogen as international demand remains low. In 2025, the region's hydrogen sector made modest progress without any final investment decisions (FID) due to weak international demand.

Countries like Chile and Brazil are implementing tax credit schemes to support domestic hydrogen consumption. Chile's $2.8 billion initiative, targeting maritime and mining sectors, opens applications in early 2026.

Brazil's pending $3 billion scheme will prioritize projects with significant decarbonisation potential. Colombia has revised its hydrogen strategy to enhance local market development by 2030. Meanwhile, Paraguay's Atome project has secured financing by targeting Mercosur demand. Countries may reach key project milestones by 2026 as infrastructure bottlenecks are addressed, and industry experts remain optimistic about long-term renewable hydrogen production in the region.