Latin America Shifts Focus to Domestic Clean Hydrogen Market Amidst Weak International Demand
Latin American countries are increasingly focusing on domestic clean hydrogen markets due to weak international demand, with initiatives like Chile's $2.8 billion program for the maritime and mining sectors and Brazil's upcoming $3 billion scheme aimed at decarbonization. Colombia is also revising its hydrogen strategy to boost local market development by 2030, while Paraguay's Atome project has secured financing targeting Mercosur demand. Experts remain optimistic about overcoming infrastructure challenges and achieving significant project milestones by 2026.
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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.
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