Energy Advisor 2025-04-04 – Inter-American Dialogue

LATIN AMERICA ADVISOR

Energy ADVISOR

A daily publication Of the dialogue

April 4, 2025

Can Peru Develop a Major Green Hydrogen Plant?

Latin America’s largest planned green hydrogen production facility, the Horizonte de Verano project in Peru’s Arequipa region, recently received environmental approval. // File Photo: Gerd via Adobe Stock.

Q

Peruvian regulators on March 5 approved environmental permits for the Horizonte de Verano green hydrogen project, which aims to become Latin America’s largest green hydrogen facility in terms of production capacity. Verano Energy and Grenergy’s Horizonte de Verano project, which includes a 5.9-gigawatt utility-scale solar energy plant, is scheduled to begin initial commercial operation in 2027. What technical or regulatory challenges lay ahead of the Horizonte de Verano project? How do Peru’s efforts to develop its green hydrogen industry compare to those of other countries in Latin America? What would the project’s success mean for fledgling alternative fuels markets in the Western Hemisphere?

A

Juliana Rubio, associate director of the Americas program at the Center for Strategic & International Studies: “his project is massive. Even one of the region’s most advanced initiatives—Chile’s HIF Magallanes—is planning around three to four gigawatts of capacity, far less than the 5.9 gigawatts planned for Horizonte de Verano. This makes Peru’s project the largest in the region and a potential game-changer for scaling green hydrogen in Latin America. The project’s main goal is to produce green ammonia, mainly used in fertilizer production. But investors in green hydrogen are betting it will also become a key fuel for shipping, heavy industry and long-range transport. A 26-kilometer pipeline will move the ammonia to coastal storage—clear proof that Peru has its eye on export markets. Export capacity is key to scaling production and staying competitive in the green energy…”

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ABOUT THE Energy ADVISOR

A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.