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Uruguay | Offshore Wind and Hydrogen

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Charley Rattan's picture
World Hydrogen Leader Charley Rattan Associates

UK based offshore wind & hydrogen corporate advisor and trainer; Faculty member World Hydrogen Leaders. Delivering global hydrogen and offshore wind corporate investment advice, business...

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  • Sep 9, 2022
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URUGUAY, OFFSHORE GREEN HYDROGEN

As with neighbouring Brazil, which I already shared with the community, the offshore wind and hydrogen sectors are vibrant at the moment with the publication of the Green-hydrogen-roadmap

Here, Uruguayan state-owned oil refinery ANCAP, launched its “H2U Offshore” project to produce green hydrogen from renewable sources. The project seeks to further position Uruguay as a leader in green energy as the country looks to achieve carbon neutrality by 2050.

Studies indicate that Uruguay’s offshore wind generation potential is around 300GW. The 500 km2 areas have a nominal capacity of 1.25 GW of power and a production capacity of at least 100 tons of hydrogen per year. 

Looking at the distance to the shore: 20 - 100km Water Depth: 20 - 60 m 10km buffer zones the sites will be suitable for certain Floating turbine technologies.

ANCAP offers technical capacity in complex installation processes, knowledge and experience in geology and offshore areas around Uruguay, and in contracts and negotiations with oil majors. 

The purpose is to generate green hydrogen for export from offshore wind farms. 

The “H2U Offshore” project will offer between 8 to 16 blocks off the coast of Uruguay. The first block is located more than 10 km from the Uruguayan coast at a depth of between 10 and 30 meters.

The second block is located more than 100 km from the Uruguayan coast with a maximum depth of 50 meters. 

Investment is estimated to be between $1- $3 billion USD. The concession of the blocks will be for a term of 25 years and include the installation of the platform, the hydrolyser, and green ammonia plant. 

 The bidding process will last from 8 months to a maximum of 2 years. 

 

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ANCAP is interested in meeting multinational companies and private investors with experience in this field, as well as large oil companies with experience in hydrogen production.

 

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Companies must present a scope of work, that includes ANCAP participation, in the project. When ANCAP receives enough interested parties, it will release a tender.

Montevideo summarises the potential:

Uruguay is a reliable and stable country, leader in generation of clean energies; above ground risks minimized

• Successful 1st energy transition (power sector), strong drive from the Government for the 2nd energy transition, with green H2 as pillar

• ANCAP is Uruguayan NOC, has assets and experience working with H2 and dealing with major energy companies.

• Excellent wind resource offshore Uruguay

• A lot of analogies with E&P bidding terms and contract models CONCLUSIONS (2/2)

• Ongoing bidding rounds: May and November of every year

• Minimum risk and capital commitment for energy companies

• Energy companies could hold a contract area for 10 years before submitting a development plan (or relinquish)

• Data rooms available

• All terms in draft yet, so input from the industry appreciated

 

Stay informed: Offshore Wind and Hydrogen  

 

Charley Rattan

Charley Rattan's picture
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