Chile’s green hydrogen push: Study identifies importing logistics gaps

A pioneering study outlined port and terminal infrastructure requirements that Chile will need to meet to support development of a hydrogen industry.

Some 70 green hydrogen projects have been publicly announced in Chile, some targeting the export market, some domestic offtake, and others both.  

A chunky piece of the development jigsaw puzzle is logistics, chiefly maritime infrastructure to import the likes of wind turbines and to export and move along the coast, at least in the initial phases, hydrogen derivatives like ammonia or e-fuels. Cabotage operations are also envisaged against a backdrop of efforts to decarbonize the economy and ease reliance on imported fossil fuels. 

“It’s a complex issue because it involves a multitude of actors, public and private, and significant investment is required," said Benoît Larielle, cooperation attaché of the EU’s delegation in Chile. "As well, for the European Union, it's a sensitive topic because of its environmental dimension, its impact on local communities."

The EU is interested in importing derivatives to help decarbonize its economy. The bloc, via the EU-LAC Global Gateway Investment Agenda, works with Latin America to identify “fair, green and digital investment opportunities” that will also help achieve sustainable development goals.

In southern region Magallanes, studies-phase work corresponding to two green hydrogen infrastructure projects has advanced. The initiatives fall under the banner of agreements signed by state oil company Enap and e-fuels pioneer HIF Global and other private sector players.

An objective is using, adapting and expanding existing Enap assets to help support hydrogen sector development in the barren, windswept region.

Larielle opened an associated webinar hosted by hydrogen-promotion entities H2LAC – supported by EU and multilateral funding – and Team Europe Initiative on Renewable Hydrogen Development in Chile (RH2), led by the EU and its member states. 

Around 90% of Chile’s foreign trade is conducted via maritime infrastructure. “This shows the importance of port infrastructure that is capable of providing this important service,” said Rubén Guzmán, head of the Chilean energy ministry's energy economy and sustainability unit. “It’s always advisable to address the challenges early, in the face of the possibility of being an important leader in the sphere of this major market.”

The bulk of Chile’s green hydrogen projects are in Magallanes and northern region Antofagasta. 

Green hydrogen and derivatives projects are advancing, with several now in the permitting phase, as the focus sharpens on driving down costs and securing offtakers, with European and Asian buyers in the crosshairs of derivatives producers. Some projects, such as the US$11bn HNH Energy complex planned for Magallanes and in the permitting phase, include maritime terminal infrastructure. 

The study

The research was conducted by the Chilean office of the German agency for international cooperation GIZ and consulting firm Subiabre & Sánchez Ingenieros Asociados.

A key pillar was determining current and future capacity associated with logistics services the hydrogen industry will require.

Ports and terminals deemed apt to handle vessels for importing, exporting and cabotage operations were identified, spread across Arica y Parinacota, Tarapacá, Antofagasta, Atacama, Coquimbo, Valparaíso, Biobío, Los Ríos, Los Lagos, Aysén and Magallanes regions.

Researchers used energy ministry ammonia projections along with a transport ministry methodology.  

Data on asset location, owner, owner type (private or state) and license type (maritime concession or port concession), along with information on the likes of docking facilities and products handled, was gathered.

Researchers conducted some 25 interviews with shipping companies, port and terminal operators as well as players from the power generation and hydrogen sectors. 

Out of a list of more than 100, 20 ports and terminals were identified as apt for importing wind generation components, among them the JS Mardones and Laredo terminals in Magallanes, where adaption investment would nevertheless be needed. Enap and the private sector have a project at Laredo, as well as at the Cabo Negro industrial complex and at the San Gregorio terminal.

Meanwhile, 21 were identified as apt for exporting and cabotage loading operations, and 26 for cabotage unloading operations, with adaption outlay required for some.

Researchers also found that six ports and terminals held ammonia and methanol transfer authorizations. 

Ammonia

– Terminal Marítimo Puerto Mejillones: Ammonia (Antofagasta region)
– Terminal Marítimo Enaex: Ammonia (Antofagasta region)

Methanol

– Terminal Marítimo Oxiquim: Methanol (Antofagasta region) 
– Muelle Oxiquim: Methanol (Valparaíso region)
– Terminal Marítimo Escuadrón Oxiquim: Methanol (Biobío region)
– Terminal Marítimo de Cabo Negro: Methanol (Magallanes region)

Class 2

– Terminal Terquim: Gases (Mejillones)

KEY FINDINGS

A common theme at hydrogen conferences, and reflected in the Enap initiatives underway in Magallanes, is not challenges associated with exporting derivatives or cabotage operations but rather those linked to getting the likes of wind turbine towers into the country, particularly Magallanes, where multiple gigawatts of capacity will be needed. 

The bulk of associated capacity in the north would be solar PV, with panels delivered in containers.

Indeed, a presentation given during the event states that the outlook is "favorable" for exporting infrastructure, given the prospect of steady future logistics demand. In contrast, demand for component-importing capacity would be transitory.

Conclusions outline what would be needed in project hubs Antofagasta and Magallanes.

Under an optimistic scenario, for importing wind components, Antofagasta would need an additional, dedicated docking point as would Magallanes, where the report cited the possibility of expanding the Mardones terminal and installing mobile cranes, something that may be vital from 2028-29. 

For loading for export and cabotage, six docking points would be needed in the north, with pressure on capacity possible from 2030. In the south, five docking points would be needed, which could be delivered by Enap and the private sector, the presentation states.

Three long-term green hydrogen demand scenarios were considered, for 2030, 2040 and 2050. Commercial-scale production should get underway in the country in the second half of the decade.