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The Ministry of Industry, Energy and Mines of Uruguay recently announced a major initiative to invest in the construction of the country's first green hydrogen project in the capital of Rio Negro province, Frabantos. The total investment of this project is 38.6 million US dollars, and it is expected to be officially put into operation in 2026.

The project plans to install 8000 solar panels, utilize solar energy to produce green hydrogen, and simultaneously construct supporting hydrogen production facilities and refueling stations. After production, it is expected to produce 77 tons of green hydrogen annually. These green hydrogen are mainly supplied to the heavy truck transportation industry and serve key industries such as forestry and papermaking. They can reduce carbon dioxide emissions by 870 tons annually, which is of great significance to Uruguay's green development.

Green hydrogen, as a highly promising clean energy source, Uruguay has unique advantages in developing the green hydrogen industry. According to a report by the Uruguayan Ministry of Industry, Energy, and Mines, between 2017 and 2020, 97% of the country's electricity came from renewable energy sources such as hydro, wind, and solar, laying a solid foundation for the green hydrogen industry. Abundant wind and solar energy resources can effectively reduce the cost of large-scale hydrogen production and enhance market competitiveness; At the same time, Uruguay's developed internal logistics system and important international ports provide convenient conditions for the domestic consumption and export of green hydrogen. Uruguayan Minister of Industry, Energy and Mines, Elisa Fasio, has made it clear that developing the green hydrogen industry is a key link in Uruguay's next phase of energy transition.

In recent years, the Uruguayan government has formulated detailed plans for the development of the green hydrogen industry. The first version of the "Uruguay Green Hydrogen and Its Derivatives Roadmap" will be launched in 2022 and public suggestions will be widely solicited. The official version has been released. According to the roadmap, it is expected that by 2040, the green hydrogen industry will attract $18 billion in investment, directly create over 30000 jobs, and generate an annual revenue of $1.9 billion. By 2030, the penetration rate of heavy-duty hydrogen fuel cell vehicles in Uruguay will reach 3%, rising to 35% by 2040. In addition, the demand for green hydrogen derivatives such as green ammonia and green methanol in fields such as maritime and air transportation will continue to grow. It is expected that by 2040, the penetration rate of using this type of fuel in Uruguay's domestic container ships will reach 9%. Green hydrogen derivatives will also help the country's fertilizer industry achieve carbon reduction goals.

To further promote the development of the green hydrogen industry, the Uruguayan government is gradually increasing subsidies for research related to green hydrogen. In October 2024, the Uruguayan National Research and Innovation Agency launched an initiative to provide funding for the application of green hydrogen related research technologies such as solar hydrogen production, hydrogen energy transportation and supply. At the same time, Uruguay actively attracts investment from various countries in the green hydrogen industry. In May 2024, Fauci ó led a delegation to attend the World Hydrogen Summit in the Netherlands, vigorously promoting the country's green hydrogen projects. Facio confidently stated, "Uruguay is expected to become an important investment destination and export center for the green hydrogen industry. It is expected that by 2040, Uruguay's green hydrogen industry export revenue will reach 1.3 billion US dollars." Uruguay is steadily moving towards a new journey of green hydrogen industry development, leading the country's sustainable development with clean energy.