An island region famed for its location at the very tip of South America wants to diversify its economy away from fossil fuels to tap the global clean-energy transition.<\/p>\n\n\n\n
Argentine province Tierra del Fuego \u2014 which translates to land of fire \u2014 is trying to lure investments in hydrogen and ammonium, with its base case targeting $6 billion of spending on wind farms and electrolyzers.<\/p>\n\n\n\n
\u201cTierra del Fuego has the potential with its resources to do this,\u201d Governor Gustavo Melella said in an interview on Tuesday. Melella, a former Salesian priest who switched course to politics in the mid-2000s, highlighted the province\u2019s strong Patagonian winds and unique geography since hydrogen producers could ship through both the Atlantic and Pacific oceans.<\/p>\n\n\n\n
The provincial government recently completed a pre-feasibility study and is working on environmental considerations and infrastructure to pave the way for hydrogen projects, with the fuel coveted by heavy industries like steelmaking to reduce reliance on carbon. Some companies are also betting that hydrogen fuel cells will be a better choice than batteries to power trucks and ships.<\/p>\n\n\n\n
\u201cWe have to be ready for when change arrives,\u201d Melella said at the province\u2019s offices in Buenos Aires. \u201cIf not, when somebody wants to invest in two or three years, they won\u2019t be able to do it here — the moment will have passed us by.\u201d<\/p>\n\n\n\n
Two international companies have expressed interest in developing hydrogen in Tierra del Fuego, Melella said. One is France\u2019s TotalEnergies SE, which already produces natural gas there. The other is US-based MMEX Resources Corp. in partnership with Germany\u2019s Siemens Energy AG.<\/p>\n\n\n\n
Hydrogen is increasingly moving to the forefront of the Argentine national government\u2019s diplomatic agenda. Officials led by the economy minister and business executives met with a German delegation in Buenos Aires on Wednesday to discuss opportunities to develop the fuel.<\/p>\n\n\n\n
Melella won\u2019t allow the involvement of UK investors because Tierra del Fuego\u2019s jurisdiction would stretch to the Falkland Islands, or Malvinas, a British overseas territory fiercely claimed by Argentina.<\/p>\n\n\n\n
Tierra del Fuego needs a new port so it can import wind turbines and export fuel. For that, officials are banking on Mirgor SACIFIA, a company based in the province that plans to spend $200 million to build a new facility.<\/p>\n\n\n\n
Still, it\u2019s difficult to ship liquid hydrogen long distances, the pre-feasibility study says. Until the world finds a solution, Tierra del Fuego would probably produce ammonia, made by mixing hydrogen and nitrogen, with the appeal that it\u2019d be labeled \u201cgreen\u201d since the hydrogen would come from the wind-powered water electrolysis plants rather than methane. Ammonia, mainly used in fertilizers, is easier to store and transport. <\/p>\n\n\n\n
Tierra del Fuego\u2019s economy depends on oil and gas drilling; tourism, since it\u2019s a jump-off point to Antarctica; and electronics assembly plants attracted by special tax breaks.<\/p>\n\n\n\n
Other regions of Argentina on the Atlantic coast have already built wind farms, and Rio Negro and Buenos Aires provinces are looking into wind-powered hydrogen projects.<\/p>\n\n\n\n
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