Green ammonia is increasingly recognized as a key energy vector for advancing the global transition towards a low-carbon economy. Produced by combining green hydrogen—obtained through water electrolysis powered by renewable energy—with atmospheric nitrogen via the Haber-Bosch process, it offers a sustainable alternative to conventional ammonia derived from fossil fuels. This innovation plays a dual role: reducing the carbon footprint of fertilizer production and serving as a clean fuel for international maritime transport.

The purpose of this work is to examine the potential of Paraguay to develop a competitive green ammonia industry by leveraging its renewable energy resources and to analyze its implications for sustainable economic growth and integration into international trade. The specific objectives are: (i) to highlight the role of renewable energy as the foundation for competitive green ammonia production, (ii) to evaluate Paraguay’s unique position as a hydroelectric-based economy with surplus clean energy, (iii) to explore the logistical feasibility of transport along the Paraguay-Paraná waterway to global markets, and (iv) to assess the economic and social impact of this new industry on national development.

The methodology applied consists of a descriptive and comparative analysis of international reports (IEA, IRENA, IMO) and academic studies on hydrogen, renewable energy, and fertilizers. Variables considered include renewable electricity availability and cost, electrolysis efficiency, water resource access, and projected global demand for sustainable ammonia in agriculture and shipping.

The findings indicate that Paraguay, with more than 95% of its electricity generated from renewable hydropower, holds a strategic comparative advantage for large-scale green ammonia production. By exporting this product through its fluvial corridor to international markets, Paraguay could diversify its economy, attract foreign direct investment, and generate highly skilled jobs. Furthermore, green ammonia exports would strengthen the country’s role as a renewable energy exporter in molecular form, directly linking sustainable resource management with economic growth.

In conclusion, the development of a green ammonia industry in Paraguay represents not only a technological and environmental innovation but also a comprehensive strategy for economic growth, industrial diversification, and sustainable integration into global trade. This positions Paraguay as a key contributor to international climate commitments while simultaneously fostering its national development agenda.