The European Commission has agreed on a deal with Argentina for the supply of liquefied natural gas (LNG) and collaboration on hydrogen and renewable energy proliferation.
The memorandum of understanding (MoU) will see cooperation in hydrogen, renewable energy, energy efficiency and natural gas. Under the agreement, a “stable and secure” delivery of LNG will be established from Argentina to the EU.
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.
European Commission President Ursula von der Leyen stated that the MoU “is an important step in rolling out the EU’s Global Gateway Investment Agenda (GGIA) and will help us achieve our objectives on climate and energy”.
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The GGIA, announced this week, will see more than €45bn ($50.6bn) invested by the Team Europe initiative between now and 2027 in Latin America and the Caribbean for clean energy capacity and critical mineral extraction, as well as social projects. Team Europe consists of the EU, EU member states, the European Investment Bank and the European Bank for Reconstruction and Development.