The European Commission and Argentina have reached an agreement for the supply of LNG and collaboration on the spread of hydrogen and renewable energy proliferation. The memorandum of understanding (MoU) will see cooperation in hydrogen, renewable energy, energy efficiency, and natural gas. A “stable and secure” LNG delivery from Argentina to the EU will be established as per the terms of the agreement.
In 2022, European countries imported 121 million tonnes of LNG. This came at least partly as a result of the Russian invasion of Ukraine and the subsequent supply cut of Russian gas to the rest of Europe. Achieving a steady supply of LNG from South America’s largest natural gas producer will go some way in easing shortage concerns. The MoU will also see Argentina and the EU use hydrogen and its derivatives in industrial applications, as well as energy storage and transport. For its part, Argentina has already been investing in green hydrogen solutions for the future.
In 2021, following COP26, the country attracted $8.4bn (2.25trn pesos) of green hydrogen infrastructure investment from Australian miner Fortescue. This investment is set to come in the form of renewable infrastructure in the country’s Rio Negro region that, once complete, aims to produce 250,000 tonnes of hydrogen between 2024 and 2028.