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Argentina’s hydrogen production in 2026 is estimated at approximately 400 to 420 thousand tonnes, predominantly sourced from natural gas. This output primarily serves established industrial demand in refining, chemical processing, and fertiliser manufacturing. Overall production levels reflect long-standing consumption patterns rather than speculative capacity expansion, with volumes determined by feedstock availability, plant utilisation rates, and the stability of downstream demand.
Production growth is shaped by Argentina’s large natural gas resource base, including unconventional gas development, alongside incremental additions of renewable-linked electrolysis capacity. Market conditions balance competitive feedstock costs and mature industrial infrastructure against capital availability, infrastructure modernisation needs and evolving emissions constraints.
From a production perspective, hydrogen pricing is determined by natural gas input costs, plant efficiency, operating rates and integration with downstream assets. Capacity growth follows industrial expansion, substitution requirements and long-term energy transition objectives rather than short-cycle market signals.
Industrial hydrogen dominates production allocation due to continuous demand and direct integration with existing plants. Derivatives, particularly ammonia, serve as both domestic inputs and export products, shaping production scale and plant configuration.
SMR remains the dominant production route due to scale, reliability and integration with downstream processes. Electrolysis contributes incremental capacity aligned with renewable availability and industrial decarbonisation strategies.
Industrial end uses define baseload hydrogen production due to stable demand and continuous operation requirements. Other sectors influence incremental output but do not yet determine capacity sizing.
Buenos Aires and Central Industrial Corridor
This region hosts the majority of hydrogen production due to proximity to refining, chemical and fertiliser facilities, pipeline infrastructure and industrial demand centres.
Patagonia supports hydrogen production potential through access to energy resources, land availability and export logistics. Production activity here is increasingly linked to new infrastructure development.
Northern regions support smaller-scale hydrogen production aligned with local industrial use and energy systems.
Argentina’s hydrogen supply chain begins with natural gas and electricity supply, followed by hydrogen production, compression, storage and direct industrial consumption or conversion to derivatives. Ammonia remains the primary traded hydrogen carrier.
Cost structure is dominated by feedstock pricing, plant efficiency and utilisation rates. Storage, transport and conversion costs shape delivered hydrogen economics, particularly for export-oriented derivatives.
Pricing formation reflects gas market dynamics, long-term industrial contracts and evolving regulatory frameworks rather than spot hydrogen markets.
Argentina’s hydrogen production ecosystem includes gas producers, refiners, fertiliser manufacturers, industrial gas suppliers, utilities and policymakers. The ecosystem emphasises operational reliability, feedstock security and gradual system evolution.
Equipment providers support reformers, electrolysers, compression systems and storage infrastructure. Producers coordinate feedstock procurement, plant operation and long-term offtake agreements.
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Argentina Hydrogen Production Capacity and Growth Outlook
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