Every place in the world has value and some are much easier than others. In the developed world, most of those places of value have been tapped, which means there is value somewhere else. In many countries there is natural value, but to unleash the value infrastructure is needed to be built. At some point in time, prices rise for the product and even with the infrastructure costs, value is found.

In an article by Oliver Griffin, Lucinda Elliott, and Fabio Teixeira of Reuters, Latin America’s wealth of hydroelectricity and other renewable energy resources could make the region a major producer of clean hydrogen as the world seeks alternatives to fossil fuels.

Similar to the Mountains that are found on the west coast of the US, the mountain range runs all the way to the tip of South America. Mountain ranges means there are potential rivers to be tapped to generate hydro electricity or relatively low costing energy. Low cost energy means other manufacturing needs can be built. If they are built, less migrants to the US.

Government leaders expect a major boon for the region from clean hydrogen, also known as green hydrogen, produced using electricity from renewable sources that do not emit carbon.

Billons of dollars are on offer from multilateral lenders.

The problem is pricing. Clean hydrogen is currently about $10 kilogram. Gray hydrogen generated from fossil fuels is between $1 and $3 a kilogram.

A World Economic Forum report published in August recorded $6.1 billion as earmarked for renewable investments including hydrogen by multilateral lenders and funds. In addition, Uruguay is examining a feasible study for a $4 billion clean hydrogen plant.

The Inter-America Development Bank (IAB) believes the investments should be $100 billion to $300 billion by 2030.

Linking to dividend paying stocks, similar to most things in life, costs of raw materials is a driver of investments. Some investments are for now, some need government backings as the needs are recognized but it is in the future. When costs rise for the existing methods, alternatives are quickly found and pushed. When investing, it is wonderful to think about a perfect future, however research the actual costs before making large commitments.

There are more questions than answers, till the next time – to raising questions.