The Arequipa Regional Government is promoting a carbon-neutral cluster oriented toward green hydrogen production, renewable energy generation, and sustainable industry, structured in two phases. The first involves renewable energy generation, primarily solar, while the second phase covers green hydrogen production through electrolysis, storage, and integration with associated industries. The project contemplates development of a carbon-neutral industrial park connected to port infrastructure in Islay province, including areas near the Matarani and Quilca ports, which would facilitate export of energy and green hydrogen derivatives.
The ministry highlighted coordination with the Ministry of Production and the Technological Institute of Production to advance creation of the Renewable Energy and Hydrogen Productive Innovation and Technology Transfer Center. The facility is oriented toward strengthening technology transfer and participation of national industry in the value chain. Shinno stated the strategic priority is guaranteeing the institutional and regulatory structure that translates regional projections into consolidated realities for national development.
The government’s 2026-2031 management agenda for the energy and mining sector establishes four priorities: reactivating investment, strengthening energy security, closing territorial gaps through rural electrification and natural gas expansion, and modernizing the regulatory framework by simplifying procedures without reducing environmental and social requirements. Shinno also emphasized the importance of advancing natural gas access to Arequipa, a resource that would improve regional competitiveness and expand opportunities for households and productive activities.
The Arequipa initiative positions southern Peru within a broader Latin American context where green hydrogen projects are advancing from planning to execution phases. Chile recently obtained environmental approval for the HNH Energy project, an $11 billion development in Magallanes that includes wind generation, hydrogen and green ammonia production, and port infrastructure. Industry experts note that regions with competitive renewable electricity costs hold advantages for green hydrogen production, where electricity represents approximately 70 percent of production costs.
This article was curated and published as part of our South American energy market coverage.
