underscored that Peru presents a lot of potential and a series of opportunities for world investors in terms of renewable energies and, specifically, green hydrogen.
The minister led a presentation titled "Policies and Initiatives Related to Hydrogen."
Within this framework, Mucho indicated that Peru seeks to evolve from a model based on fossil fuels to a model featuring low carbon emissions, founded on the use of renewable sources and energies, which can be harnessed for the green hydrogen industry.
The government official explained that the national energy matrix focuses mainly on the consumption of hydrocarbons, with the transportation sector being the main consumer (42.7%); followed by the industrial and mining sectors (29%); as well as the residential, commercial, and public sector (25.9%); among others.
"In the transportation sector, there is a significant market for replacing hydrocarbons with electric battery vehicles or fuel cell vehicles (hydrogen), with Diesel B5 being the most-widely-used fuel at over 56%, followed by gasohols and liquefied petroleum gas (LPG), among others," he remarked.
In this sense, Minister Mucho explained that there is also a good opportunity in the electricity sector for green hydrogen development, since renewable energies reached 6.25% in electricity production last year, adding that they accounted for 54% of energy generation in Peru.
"In March 2024, Peru enacted Law No. 31992, 'Law for the Promotion of Green Hydrogen,' aimed at promoting the research, production, transformation, distribution, commercialization, export, and use of green hydrogen as a fuel and energy vector across its various applications," he explained in detail.
Minister Mucho participated in the "Latam-Japan Hydrogen Workshop 2024," which enabled attendees to learn about the different perspectives of countries, international organizations, and business leaders on hydrogen development in the production processes of manufacturing, cement, and steel industries, among others.
It is projected that by 2040 green hydrogen will be dominant in competitiveness due to the expected low electricity prices; the high renewable potential offered by Peru, especially in the south; and technology costs reduction.