Assessment of the Potential for Hydrogen Production from Bottom Fixed Offshore Wind in Uruguay

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Abstract After having decarbonized almost the entire electricity matrix, the next step in the Uruguayan energy transition includes the development of a hydrogen economy, for which both local and export markets are being considered, based on vast untapped unconventional renewable resources potential onshore and offshore. For ANCAP (NOC), hydrogen is key in the transition to a low-carbon and sustainable energy company, hence initiating several actions including the assessment of the potential for hydrogen production from offshore wind. Leveraging on data and information from offshore oil and gas exploration projects, distinct regions were delineated as the most suitable for the development of offshore green hydrogen production projects both from bottom fixed and floating wind technologies. In this work we present the results of the potential assessment of two regions suitable for bottom fixed offshore wind technologies. Region 1 is located at the interior waters of the Uruguayan territorial sea at distances longer than 10km from the coast and water-depth ranging from 10 to 30 m. Region 2 is located on the Uruguayan Exclusive Economic Zone at distances longer than 60 km from the coast on water-depth ranging from 20 to 60 m. The assessment of the potential of these regions includes both the power generation and hydrogen production according to stochastic model based on capacity density data from North and Baltic Sea projects, energy requirements for PEM electrolysis technology and capacity factor data specific for offshore Uruguay. Additionally, both regions were evaluated and compared based on other inferred aspects derived from different development concepts, such as social acceptance, OPEX, CAPEX and logistics among others. Results indicate that Region 1 and Region 2 have potential for power generation of 14GW and 110GW respectively, that corresponds to hydrogen production potential of 1.2Mton/year and 10Mton/year respectively (indicated figures corresponds to mean values). From contrasting both regions on other different aspects, results that Region 1 has advantages regarding CAPEX and OPEX while Region 2 has advantages regarding potential social acceptance and logistic requirements. Calculated hydrogen production potential for both regions represent more than eighty times the equivalent diesel currently consumed in Uruguay for heavy duty transport, demonstrating the relative size of the local market compared with the offshore potential. On the other hand, already announced green hydrogen future requirements for Europe and Asia suggest attractive markets for this kind of developments. For the first time the potential for hydrogen production from bottom-fixed offshore wind in Uruguay was assessed indicating very attractive results, both technically and economically, for the export market. Results are encouraging as lead to new possibilities to support the next energy transition in the country towards the development of a hydrogen economy.