In recent years, the debate on the energy transition, particularly hydrogen production, has centered on Europe, where the war between Russia and Ukraine and Western sanctions have increased the desire to reduce dependence on imported fossil fuels. This context has generated oil price instability, stimulating investment in renewable energies (Kalt & Tunn, 2022).

GH and its derivatives can play a central role in energy transition in two ways: (i) by providing flexibility to the energy supply from difficult-to-store sources such as solar and wind power, since surplus production can be used to generate GH, and (ii) by replacing fossil fuels to decarbonize material production, such as steel and cement, as well as heavy-duty transport through fuel cells (Cont & Juncosa, 2024).

Several countries are already planning, and in some cases beginning, GH production. In Latin America, the incentive lies in the abundance of renewable energy sources; however, by 2024, only 4% of GH projects had been confirmed (International Energy Agency, 2024). As Wyczykier (2023) notes, GH production requires large-scale projects, including wind and photovoltaic generation, along with adequate transportation and distribution systems. At the same time, debates persist over its social and environmental impacts, particularly regarding water use and territorial changes that affect local communities and activities (Wyczykier, 2023). In this regard, studies in Argentina and Chile warn of impacts on native species, interference with other territorial activities, and cultural transformations among local populations (Mohor, cited in Wyczykier, 2023).

Although Uruguay lacks fossil fuel reserves, it has renewable primary energy sources. Hydroelectric power was introduced in the first half of the 20th century, and until the 2000s electricity generation combined hydro with imported fossil fuels. More recently, wind, biomass, and solar energy have been incorporated (Contreras et al., 2024). This diversification enabled Uruguay to become a pioneer in renewable energy within a few years, with wind power playing a leading role (Figure 1).

Figure 1
Electricity generation by source, 2005, 2013, and 2023
Source: Prepared by the authors based on data from MIEM (2024a).

This transformation took place within the framework of a state energy policy designed to address the structural deficiencies of the industry (MIEM, n.d.). The policy was developed and approved by the Executive Branch in 2008 and endorsed by an inter-party commission in 2010 (Ardanche et al., 2017, 2018). Nevertheless, some sectors remain dependent on fossil fuels, particularly transportation, which accounted for 58% of carbon emissions in 2023 (Figure 2).

Figure 2
Final energy consumption by sector and carbon emissions by sector (2023)
Source: Prepared by the authors based on data from MIEM (2024a).

In 2018, interest in incorporating GH into the energy mix emerged, with the goal of decarbonizing heavy-duty and long-distance transportation. Two public companies drove this initiative—the National Administration of Power Stations and Electric Transmissions (abbreviated UTE² in Spanish) and Ancap³—together with MIEM, which created the Interinstitutional Group on Green Hydrogen and Derivatives. Within this framework, Ancap launched the Verne Project to explore medium- and long-term opportunities for GH, focusing on its production and use in heavy and long-distance transportation (MIEM, 2023). The group received technical advice from Hinicio, an international renewable energy consulting firm (Hinicio, 2022). It also received support from international organizations, such as the Inter-American Development Bank (IDB), which assessed the environmental viability of a hydrogen pilot project and provided legal advice. Additionally, it received support from GIZ Germany (German Society for International Cooperation), which analyzed the technical and economic aspects of developing a hydrogen economy in Uruguay and Paraguay (Villagra de Biedermann, 2022).

With the change of government in 2020, the group expanded to include additional state actors, and production targets shifted toward prioritizing exports to countries in the Global North (MIEM, 2023). That same year, preliminary studies were carried out in collaboration with the Port of Rotterdam, financed by the IDB, which highlighted Uruguay’s potential as a producer and exporter of GH and its derivatives to Europe, particularly Rotterdam (Ferragut et al., 2022; MIEM, 2023).

In 2021, also with IDB support, Uruguay began preparing a GH roadmap, commissioning McKinsey & Company to conduct technical studies. The roadmap defines national priorities and sets specific goals through the “H2U Program,” organized into five components: (i) capacity building, especially training personnel in renewable energy; (ii) adaptation and development of a regulatory framework; (iii) creation of investment incentives; (iv) development and adaptation of infrastructure; and (v) citizen access to information and spaces for dialogue (MIEM, 2023).

To date, four GH production projects have been announced in Uruguay: the Tambor—Enertrag Project, the HIF Global Project, the H24U Project (Hydrogen Sector Fund), and the Kahirós Project (MIEM, 2024b). As shown in Figure 3, all are in the north-central region of the country and are at different stages of progress.

Figure 3
Distribution of GH projects in Uruguay
Source: Prepared by the authors based on data from MIEM (2024b).

The following section analyzes the Tambor—Enertrag Project, located in the town of Tambores, Tacuarembó. The project aims to produce 13,000 tons of GH per year and export methanol as the final product. Launched in 2022, the project is designed to use wind and solar energy to produce hydrogen. It includes an on-site water electrolysis plant and facilities to refine the obtained hydrogen. The initiative is led by the German company Enertrag and the Uruguayan firm SEG Ingeniería (SEG Ingeniería & Enertrag, 2021; H2LAC, 2022). The project is currently undergoing an environmental impact assessment by the Ministry of Environment (MA, 2024).

The incorporation of GH into Uruguay’s energy matrix can be understood from the perspective of the NSI as a social and interactive process involving multiple actors. It is therefore essential to analyze these actors and, above all, to describe their relationships. Systemic and virtuous links among them can foster interaction between the scientific-technological sphere, the government, and the productive sector, promoting new knowledge, learning processes, and greater awareness of productive and civil society issues.

Actors in Uruguay’s GH development can be grouped into five sectors: productive, public, academic, civil society, and international organizations (Figure 4). Taking into account the purpose of Sabato and Botana (2021), the interests of each sector and their interrelationships should be examined.

Figure 4
Sectors involved in the development of GH in Uruguay and intersections between them

Note. Each circle represents a sector. Intersections reflect interactions within the same sector (intrarelations), between different sectors (interrelations), and between national and foreign actors (extrarelations).

Source: Own work.

The role of productive sector actors in GH development is linked to their ability to invest in and commercialize this technology. As an engineer from a private energy technology company explained:

… they use their knowledge to sell a service to local, regional, or global companies, so that, if the project is successful, they obtain significant income. They obtain the land, conduct the technical analysis, design the wind farm, and deliver the completed project. (Private sector entrepreneur, personal communication, September 13, 2022).

Given the high investment required, national companies must partner with foreign firms to develop GH projects (García Bernal, 2021). German companies have shown interest in Uruguay and often collaborate with public institutions. In these partnerships, the government—through MIEM and the Ministry of Environment (abbreviated MA in spanish)—plays a central role. However, interviews revealed no collaboration between public energy companies (Ancap and UTE) and national private firms.

The establishment of companies in the territory also generates demands on government institutions, such as adapting laws and decrees to project needs. For example, in Tambores, one company established connections with the departmental government to modify land-use regulations for water extraction and electrolyzer installation.

Regarding human resource training on producing GH, the Universidad Tecnológica (UTEC) is a key ally as it offers a degree in renewable energy engineering. Nevertheless, interviewees from academia noted a lack of collaboration between companies and researchers. One private sector representative argued that academia should be more proactive in showcasing its capabilities (Private sector entrepreneur, personal communication, September 13, 2022).

Ancap continues to pursue GH development through two main lines of action: onshore and offshore production. Onshore, the company seeks to leverage its industrial and logistical assets for new projects. Offshore, it plays a more active role, aiming to replicate its experience in hydrocarbon exploration with the installation of an offshore hydrogen platform powered by wind energy.

As a key public actor, Ancap—responsible for implementing fuel-related energy policies—participates in drafting bidding guidelines and specifications for open calls aimed at attracting private investment, with companies assuming the risks of GH production. Ancap also engages with other public stakeholders through the Interinstitutional Hydrogen Group, which currently includes seven ministries (MIEM, Foreign Affairs, Economy and Finance, National Defense, Transport and Public Works, Housing and Territorial Planning, and MA), as well as the Office of Planning and Budget, the Energy and Water Services Regulatory Unit, the two public energy companies (Ancap and UTE), the National Port Administration, ANII, the National Development Agency, Uruguay XXI (the agency for the promotion of exports, investments, and country branding), the Technological Laboratory of Uruguay (abbreviated LATU in Spanish), and the National Council for Science and Technology (Conicyt) ⁴ (MIEM, 2023).

In the Tambor—Enertrag Project, the Uruguayan company worked with public institutions—MIEM, MA, and the Departmental Government of Tacuarembó—on land-use authorization and the environmental impact assessment (SEG Ingeniería & Enertrag, 2021).

Currently, Ancap’s involvement in GH development is through the Interinstitutional Group. Company interviewees emphasized that projects are conducted with the understanding that the government does not invest directly; rather, private firms provide capital, know-how, and technology (Ancap technicians, personal communication, August 29, 2022).

ANII also participates through the management of the Green Hydrogen Sector Fund to support STI, created with MIEM and financed by LATU (anii, 2022). In 2022, this fund launched a call for proposals to promote innovation in GH development. One result was the funding of the “H24U Pilot Project,” led by the national consortium Saceem and CIR, which seeks to become the first commercial freight transport venture using GH as fuel (ANII, 2023b).

In parallel, the Energy Sector Fund—also managed by ANII with contributions from ANII, UTE, Ancap, and the National Energy Directorate of MIEM—received additional support in 2023 from the Renewable Energy Innovation Fund, financed by the UN Joint SDG Fund. Among its proposed challenges was GH and its derivatives, with the aim of supporting research, development, and innovation projects that strengthen national energy capacities either directly or indirectly. Through this call, the company Clerk was funded for a project on producing sustainable aviation fuel (ANII, 2023a).

Civil society actors are convened by MA and private companies in public hearings to validate project installations in the territory. However, these hearings are not binding. In this context, some actors have expressed concern about freshwater extraction for GH production, which could compete with other productive or domestic uses. In 2023, a group of residents of Tacuarembó, organized through the Native and Creole Seed network and the Water and Life collective, filed a constitutional appeal before the Supreme Court of Justice to overturn the reclassification of 100 hectares for Enertrag’s GH and methanol plant. The land had been converted from “rural productive” to “suburban industrial” use, and the plaintiffs argued that water is legally a public resource in Uruguay. The Court, however, dismissed the claim (Méndez, 2024).

Public participation opportunities in evaluating potential environmental and social impacts are paramount. A survey conducted by professors from the Universidad de la República in Tambores revealed that most residents know little or nothing about the project, and many are unaware of what an GH plant is. Once informed, respondents raised concerns about job quality, water use and its source, and the impacts water use may have on other activities. They also emphasized the need for more sources of information (Udelar, 2024). These findings highlight the lack of dialogue and participation mechanisms that effectively involve local communities in the process.

Academic stakeholders were included only at the final stage of developing Uruguay’s Green Hydrogen and Derivatives Roadmap, and the invitation was extended not to GH researchers but to members of Conicyt. In response to the lack of engagement by political and productive actors, the Academic Network for the Promotion, Research, and Development of Hydrogen and Decarbonization (abbreviated RedH2uy in Spanish) was created in 2021 in Uruguay. This ad hoc group brings together scientists from Udelar, UTEC, and the Clemente Estable Institute of Biological Research (abbreviated IIBCE in Spanish) to promote exchanges on hydrogen production and use, its role in decarbonization, and the dissemination of knowledge to stakeholders in the hydrogen economy.

A RedH2uy member noted that sector funds are not designed for academics. Although a consulting firm was hired to identify gaps in human resource capabilities, incentives to develop knowledge through research generally lack. The person interviewed argued that since 2019 energy sector funds have shifted toward consulting rather than academic research, emphasizing applied development to attract companies. As a result, proposals from academics have been rejected, and the short timelines hinder postgraduate training within project frameworks (RedH2uy member, personal communication, September 2, 2022).

Another member of the network offered a different perspective, downplaying these concerns and stressing the urgency of the project. He argued that building local capacities to produce GHs within the required timeframe is difficult, making it necessary to combine existing and potential domestic capacities with foreign knowledge and technology.

The Executive Branch (MIEM) also emphasized that academia should independently address the challenge of developing the necessary capacities. While it is working with Conicyt to identify needs, it considers the academic sector responsible for defining the required profiles. The Executive Branch will promote studies, but universities and the Technical and Professional Education Directorate (abbreviated UTU in Spanish) are expected to design the relevant training programs (Representative of the Executive Branch, personal communication, October 25, 2022).

Finally, the Executive Branch does not foresee developing national technological capacities in this field, citing a lack of competitiveness. It argues that Uruguay will be unable to compete with markets such as China and Germany, even if domestic scientific capabilities are developed (Representative of the Executive Branch, personal communication, October 25, 2022).

International organizations have primarily engaged with the Executive Branch (MIEM), contributing to preliminary studies on the feasibility of hydrogen production in Uruguay. Given their role in the process, this sector consists of two main types of categories: advisory institutions and development banks. Both the IDB and the Port of Rotterdam supported the preparation of information that informed the Green Hydrogen Roadmap to 2040. Table 2 summarizes the activities and interactions of the actors across all sectors.

Table 2
Key actors, Activities, and Interactions

Source: Own work.

Figure 5 presents a diagram summarizing the interactions among actors in the four sectors.

Figure 5
Sectors involved in the development of GH in Uruguay and their interactions

Note. Each circle represents the actors within a sector. Arrows indicate the direction and intensity of interactions between sectors, with dark arrows showing stronger engagement and lighter arrows representing weaker engagement.

Source: Own work.

Ancap, a public company, initiated the hydrogen debate in Uruguay by convening a 2018 workshop focused on decarbonizing heavy and long-distance transport. With the change of government in 2020, the objective shifted toward hydrogen exports, and MIEM assumed leadership. In this new scenario, private companies play a vital role, due to the high costs of GH development. Interviews and secondary sources highlight strong ties between private companies and leading public actors, particularly MIEM and MA. This reflects close, synchronous relationships within and between political and productive sectors.

By contrast, academic actors interact among themselves, as seen in the creation of RedH2uy, but maintain weak connections with other sectors due to limited coordination. Lacking clear demands from political and productive actors, they pursue research collaboratively yet in relative isolation. This differs notably from the earlier wind energy experience, where coordination between Udelar researchers, UTE technicians, and later DNE technicians fostered broader interaction that eventually included the business sector (Ardanche et al., 2017).

Although civil society and academic actors have been the least engaged by those leading the process, limited dialogue has emerged between them on the GH issue. Similar to the earlier sand current stage of the energy transition, organized civil society appears relatively weak and primarily linked to academia (Ardanche et al., 2017).

While coordination is evident within each sector, cross-sector collaboration is scarce, except for the productive sector and government from 2020 to 2024. This lack of intersectoral action has hindered the creation of learning spaces that could strengthen the capacity of all actors in the GH incorporation process.

Interviews show broad recognition that hydrogen represents an opportunity for Uruguay, with actors across academia, government, business, and civil society expressing interest in contributing to the debate. Exchanges and dialogue sessions—such as the first Academic Conference on Green Hydrogen in 2024—have addressed concerns, often with academia driving these initiatives. Stakeholders also agree on the need for coordination to ensure hydrogen benefits all sectors and supports national development. However, expectations differ: the government (MIEM) anticipates a proactive role from academia, while academia perceives limited demand or guidance from the public and productive sectors.

Finally, although the importance of knowledge is widely recognized, particularly with regard to training and building the capacity of human resources, the interviews also show that tensions persist. The government focuses on providing short-term consulting services and international expertise, while academia prioritizes research and medium- to long-term local capacity building.