Paraguay is accelerating its efforts to produce green hydrogen by utilizing surplus power from the Itaipu hydroelectric power plant. A recent study by the Itaipu Technological Park (PTI-PY) revealed that Paraguay has the potential to become a major hub for green hydrogen production, thanks to its abundant water resources and robust hydroelectric infrastructure.

The Itaipu hydroelectric power plant, located on the border of Brazil and Paraguay, is a world-class facility. The surplus power often generated during its operation has historically been a source of energy waste. The new study proposes a method to use this wasted energy to produce green hydrogen. Engineer Víctor Rivarola, the lead researcher for PTI-PY's study, stated that as of 2023, Paraguay has the potential to produce approximately 1 billion Nm3 of green hydrogen from the plant's surplus energy.

"Although the amount of surplus power is not constant, Paraguay has sufficient potential to grow into a key player in low-carbon hydrogen production and contribute to the decarbonization of various industries," Rivarola emphasized.

Based on these research findings, PTI-PY has already begun constructing a pilot green hydrogen production facility. Equipped with a state-of-the-art electrolyzer, the facility aims to produce 2 Nm3 of green hydrogen per hour with a target efficiency of 3.54 kWh/Nm3. This facility utilizes green hydrogen technology, which produces hydrogen by using renewable energy like hydropower to electrolyze water. This method is considered an essential energy source for combating climate change, as it results in zero carbon emissions.

The study also highlights hydrogen's role in energy storage and transportation. As an energy vector, hydrogen can efficiently store and transport surplus renewable energy, thereby maximizing the overall efficiency of the energy system. This not only reduces dependency on fossil fuels but also enhances resource utilization by producing clean energy from previously wasted water resources.

In addition to government-led research, private companies are also actively getting involved in green hydrogen production. James Spalding, president of the green hydrogen production company Atome Paraguay, announced plans to build an unprecedentedly large green hydrogen plant in Paraguay. The fertilizers produced at this plant are primarily intended for export to neighboring countries, with an expected annual revenue of approximately $130 million.

Paraguay's investment-grade rating, which it has maintained for two consecutive years, is positively influencing the attraction of such large-scale foreign investments. As collaboration between the government and the private sector intensifies, Paraguay is poised to lead the clean energy transition, secure new growth engines, and play a significant role in the global energy market.

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