Paraguay will present its new National Hydrogen Strategy next month

The Paraguayan government is on the verge of publishing a new National Strategy for the green hydrogen economy.

So much so that Gustavo Cazal , Director of Alternative Energies at the Vice Ministry of Mines and Energy of Paraguay, confirmed that the strategy in question will be presented in May and revealed a series of key aspects to consider. "We are in the final stage of the National H2 Strategy, developed with technical cooperation from the Bank."

"And its pillars are related to the opportunities and limitations in the use of resources and infrastructure," he stated during an international event. While the country has abundant water resources, not only from the large hydroelectric plants that currently supply demand but also from future smaller plants following adjustments to the legal framework, the working group is discussing the limitations and prioritization of their use. "The second pillar is the use of electricity, and Paraguay is projected to consume all its surplus by 2030. Therefore, we see obligations for large projects to generate renewable energy and how to balance that equation," he commented. "Furthermore, a strategic plan for river transport and infrastructure adaptation is needed, since if we transition to using hydrogen instead of oil, we will need a plan to make that change," he added. However, Cazal preferred not to provide figures regarding the price of electricity and the cost of hydrogen production, anticipating that further decisions are still pending; but he did mention that financing mechanisms are being designed for the projects and their progress. The document outlines the process for developing green hydrogen in the country, as well as how to transfer technology and knowledge from companies establishing operations there. It's worth noting that private companies are already involved in green hydrogen development, such as the Neorin (75 MW), Atome (120 MW in its first phase), and Fortescue (300 MW) projects, and there are also memoranda of understanding and contracts in place for hydrogen production.

IDB Invest is considering financing a green hydrogen project in Paraguay

In addition, Paraguay officially launched a H2V roadmap at the end of 2021 , which included three pilot projects expected to produce 60 to 200 kg of H2V per day for over USD 6,000,000, but ultimately failed to secure funding. However, that document focused on the transportation sector and demand generation, so this new version of the Strategy will encompass more sectors of the local economy to decarbonize the country and attract greater investment.