Chile advancing with green hydrogen plan and related infra works

Chilean authorities are betting heavily on green hydrogen to achieve the country’s 2050 carbon neutrality goals as more projects are under evaluation and efforts to install key infrastructure move forward. 

“There’s a dynamic ecosystem where more concrete initiatives will keep advancing,” Julio Maturana, head of the energy ministry’s fuel and new energies division told BNamericas after his presentation at a green hydrogen seminar held by Universidad Católica’s energy center (Energía UC).

Last month an US$11bn green ammonia project was submitted for environmental evaluation, bringing the number of such projects under review to six.

Maturana highlighted that this showed the confidence of the private sector in Chile’s investment climate.

Currently 64% of Chile’s energy matrix corresponds to fossil fuels, 22% to electricity and 14% to biomass. The aim for 2050 is for electricity to increase its share to 42%, while fossil fuels and biomass would drop to 36% and 5%, respectively. Green hydrogen would represent 16% in this scenario, the official said in his exposition.

Maturana also announced that a draft for a green hydrogen regulatory framework will be officially unveiled on September 12. 

Aside from the projects under environmental review, authorities are planning pilot projects for green hydrogen-powered transport, including a bus that is being manufactured entirely in the country and is expected to start running later this year. 

INFRASTRUCTURE

One of the main challenges for Chile’s green hydrogen market is enabling infrastructure such as roads, ports and storage sites.

State oil company Enap joined forces with HIF Chile, HNH Energy and Total Eren last year to turn the existing Laredo port in far south Magallanes region into a hub for green hydrogen production and sale. 

Enap CEO Julio Friedmann told BNamericas at the Energía UC seminar that studies are advancing and the project is entering the permitting stage, though it is still “a little bit early” to talk about specific capex. 

“We also have other terminals identified,” he said. 

Maturana, meanwhile, said those interested in green hydrogen ports are also starting to request maritime concessions, while state port firm EPA and the transport ministry (MTT) are looking into future infrastructure works around ports to boost green hydrogen terminals. 

When asked about the possible inclusion of port concessions, he told BNamericas that the option is not ruled out.

“The door isn’t closed to seek out different alternatives to develop as fast as possible, so that ports are already available by the time industries start out” producing green hydrogen, he said.