Latin America and Europe in the Energy Transition: Opportunities and Challenges of Green Hydrogen

Abstract

From the beginning of the 20th century to the present, the global energy consumption and development matrix has been dominated by a big participation of hydrocarbon resources, such as natural gas, petroleum and its derivatives. However, growing concerns about climate change and its effects on the planet`s sustainability have driven a gradual earth`s transition toward clean energy sources. In this context, hydrogen from renewable sources is emerging as a technology capable of contributing to the decarbonization of energy matrices and the fulfillment of the climate commitments made by the international community.

Europe faces the need to reduce its dependence on fossil fuels and guarantee a secure, sustainable, and affordable energy supply, which requires building strategic alliances with third parties. In this scenario, Latin America, thanks to its abundant renewable energy sources potential, huge land use availability, and favorable conditions for green hydrogen production, positions itself as a key partner in this transition. However, this regional growth opportunity faces technological, regulatory, infrastructure, and environmental challenges to ensure regional consolidation position as a competitive supplier in the global green hydrogen supply chain.

This article shows the actual situation of the European Union energy situation by analyzing the composition of its energy matrix, its main environmental commitments, its legal frameworks developed and its current political context. Furthermore, within key developed technologies for decarbonization, an analysis of green hydrogen technology is carried out, emphasizing production sources, the environmental and social implications of its development, costs, and future demand prospects. In this context, the role of Latin America as a potential strategic supplier of green hydrogen is examined, considering its production opportunities, the availability of renewable resources, and the regulatory and governance challenges required for an efficient integration into the global supply chain.