Energy

Growth Opportunities in the Latin America Hydrogen Industry, 2025–2040

Chile and Brazil are Positioned to Become Regional Leaders

INDUSTRY
Energy

RELEASE DATE
12-Aug-2026
REGION
Global
DELIVERABLE TYPE
Market Outlook

RESEARCH CODE
PLNZ-01-00-00-00
SKU
EG_2026_34816
Yes
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Growth Opportunities in the Latin America Hydrogen Industry, 2025–2040
Published on: 12-Aug-2026 | SKU: EG_2026_34816

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When hydrogen gained traction in the late 2010s, Latin America was identified as a region with high growth potential. The region already generates a high percentage of its electricity from renewable energy (mainly hydropower), it has significant solar PV and wind potential that could be exploited, and production costs are forecasted to be globally competitive. European countries moved to sign partnership agreements with key countries, and while export to the United States is a potential business opportunity, progress has been slow. The global hydrogen industry has since lost momentum, in part because of the change in the administration in the United States, but also because cost reduction has proved to be a challenge throughout the value chain globally. This report focuses on five key country markets: Argentina, Brazil, Chile, Colombia, and Mexico. Of these, Brazil and Chile lead the pack. Brazil benefits from the size of the country, giving it a wide industrial profile that can benefit from hydrogen. The absence of a clear hydrogen production target is the largest restraint for the country. Chile has a relatively high penetration of electricity from wind and solar PV, and substantial investment potential to take this higher. Clear certification would improve its score. Beyond these two countries, the prospects diminish. Colombia has a high penetration of renewables but faces wider political internal challenges. Mexico and Argentina will remain heavily dependent on natural gas as part of their energy mix and have introduced almost no supportive policies.

Author: Vasanth Krishnan

Why is it increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top 3 Strategic Imperatives on the Latin American Hydrogen Industry

Growth Opportunities Fuel the Growth Pipeline Engine™

Key Insights

Key Insights—Country Rankings

Scope of Analysis

Key Questions This Study Will Answer

Profiling Methodology and Forecast Assumptions

Regulatory Overview—Argentina

Ease of Market Access—Argentina

Physical Market Design—Argentina

Forecast Commentary—Argentina

Top Five Applications—Argentina

Country Ecosystem—Argentina

Regulatory Overview—Brazil

Ease of Market Access—Brazil

Physical Market Design—Brazil

Alternative H2 Production Outlook—Brazil

Forecast Commentary—Brazil

Top Five Applications—Brazil

Country Ecosystem—Brazil

Regulatory Overview—Chile

Ease of Market Access—Chile

Physical Market Design—Chile

Alternative H2 Production Outlook—Chile

Forecast Commentary—Chile

Top Five Applications—Chile

Country Ecosystem—Chile

Regulatory Overview—Colombia

Ease of Market Access—Colombia

Physical Market Design—Colombia

Alternative H2 Production Outlook—Colombia

Forecast Commentary—Colombia

Top Five Applications—Colombia

Country Ecosystem—Colombia

Regulatory Overview—Mexico

Ease of Market Access—Mexico

Physical Market Design—Mexico

Alternative H2 Production Outlook—Mexico

Forecast Commentary—Mexico

Top Five Applications—Mexico

Country Ecosystem—Mexico

Growth Opportunity 1: Ammonia Anchored Export Corridor from Chile and Brazil

Growth Opportunity 2: Bio-Based Hydrogen from Brazilian Ethanol and Biogas Feedstock

Growth Opportunity 3: Domestic Refining and Fertilizer Decarbonization Retrofits

Criteria Definitions—Criteria 1–5

Criteria Definitions—Criteria 6–10

Benefits and Impacts of Growth Opportunities

Next Steps

List of Exhibits

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When hydrogen gained traction in the late 2010s, Latin America was identified as a region with high growth potential. The region already generates a high percentage of its electricity from renewable energy (mainly hydropower), it has significant solar PV and wind potential that could be exploited, and production costs are forecasted to be globally competitive. European countries moved to sign partnership agreements with key countries, and while export to the United States is a potential business opportunity, progress has been slow. The global hydrogen industry has since lost momentum, in part because of the change in the administration in the United States, but also because cost reduction has proved to be a challenge throughout the value chain globally. This report focuses on five key country markets: Argentina, Brazil, Chile, Colombia, and Mexico. Of these, Brazil and Chile lead the pack. Brazil benefits from the size of the country, giving it a wide industrial profile that can benefit from hydrogen. The absence of a clear hydrogen production target is the largest restraint for the country. Chile has a relatively high penetration of electricity from wind and solar PV, and substantial investment potential to take this higher. Clear certification would improve its score. Beyond these two countries, the prospects diminish. Colombia has a high penetration of renewables but faces wider political internal challenges. Mexico and Argentina will remain heavily dependent on natural gas as part of their energy mix and have introduced almost no supportive policies.

Author: Vasanth Krishnan
More Information
Deliverable Type Market Outlook
Industries Energy
No Index No
Is Prebook No
Keyword 1 Latin America Hydrogen Market
Keyword 2 Green Hydrogen Market Report
Keyword 3 Hydrogen Industry Outlook
Podcast No
Predecessor None
WIP Number PLNZ-01-00-00-00

Growth Opportunities in the Latin America Hydrogen Industry, 2025–2040

$4,950.00
In stock
SKU
EG_2026_34816