Spotlight: Chile’s hydrogen regulation battle plan

Chile has a taken a stride along the hydrogen industry regulation highway.

Officials presented an updated regulatory working plan, setting out the areas where action will be – or is already being – carried out in a coordinated manner by multiple state entities to help spur the industry.

Regulatory enablement is among the pillars of Chile’s 2023-30 green hydrogen action plan, published earlier this year.

Derivative green ammonia, for example, is today regulated as a hazardous substance under a framework that does not consider it as an energy vector. 

The regulatory working plan builds on an original one created in 2020 and responds to a need to “update this work plan so that it is harmonious with current development perspectives, in addition to considering regulation for other aspects of the value chain, such as desalination,” the regulatory enabling chapter of the green hydrogen action plan states.

Sixteen regulations will need creating or amending and associated work schedules have been drawn up. Public consultations will be held, and regulation impact reports created.

A declaration (pictured) was last week inked by energy, transport, mining, public health, economy and housing and development officials, committing to “developing the sectoral regulations associated with the green hydrogen value chain for the creation of enabling conditions for the materialization and sustainable development of this industry in Chile.”

Other entities involved include German development cooperation agency GIZ, Chilean hydrogen association H2Chile, Magallanes region hydrogen chamber H2Magallanes, the economy ministry’s sustainable development program, fuel and electricity watchdog SEC’s hydrogen team and the hydrocarbons team of national energy commission CNE.

Chile has around 70 publicly announced green hydrogen and derivatives projects, most designed to tap the country’s world-class renewable energy resources in far south Magallanes and northern Antofagasta regions, with the bulk of the balance targeting the central-south industrial region of Biobío. 

The industry is expected to advance on twin tracks: large-scale plants targeting chiefly the export market as well as smaller-scale projects designed to help decarbonize the local economy. 

Chile has pilot projects, the biggest among them the Haru Oni synthetic gasoline demonstration plant in Magallanes, and construction of larger-scale facilities could start in the second half of the decade. Multiple projects are in the environmental review phase, with a major challenge, along with setting the regulatory foundations, being to find offtakers and trimming costs to help narrow the price gap with the likes of conventional natural gas.

REGULATORY WORK 

Regulatory work is assigned by ministry, while an associated objective is avoiding overregulation. 

According to a government Gantt chart, work on MEN 2, MEN 8 and MEN 10 has started, or will start, this year. Officials are due to start tackling MEN 3, MEN 4, MEN 6 and MEN 12 in 2025, MEN 11 in 2026, MEN 5 in 2028 and MEN 1 and MEN 7 in 2029.

Energy ministry 

• MEN 1: Modification of supreme decree DS13/22 to incorporate liquid hydrogen into the framework of safety rules for hydrogen installations. Development is expected to take 12 months prior to being submitted to the comptroller general for approval.
  
   
• MEN 2: Creation of quality rules for hydrogen based on type of end-use. Development is expected to take 12 months prior to being submitted to the comptroller general for approval.
  
   
• MEN 3: Modification of supreme decree 132/79 to incorporate rules on the sale of hydrogen as an energy source. Development is expected to take 12 months prior to being submitted to the comptroller general for approval.
  
   
• MEN 4: Modification of supreme decree 280/09 to incorporate hydrogen-gas blends into the framework of safety rules for piped gas transport and distribution. Development is expected to take 24 months prior to being submitted to the comptroller general for approval.
  
   
• MEN 5: Modification of supreme decree 280/09 to incorporate pure hydrogen into the framework of safety rules for piped gas transport and distribution. Development is expected to take 27 months prior to being submitted to the comptroller general for approval.
  
   
• MEN 6: Modification of supreme decree 66/07 to incorporate hydrogen-gas blends into the framework of safety rules on gas installations and meters in public and private built structures. Development is expected to take 24 months prior to being submitted to the comptroller general for approval.
  
   
• MEN 7: Modification of supreme decree 66/07 to incorporate hydrogen into the framework of safety rules on gas installations and meters in public and private built structures. Development is expected to take 24 months prior to being submitted to the comptroller general for approval.
  
   
• MEN 8: Creation of a regulation for fueling stations that dispense hydrogen gas for on and offroad vehicles. Development is expected to take 24 months prior to being submitted to the comptroller general for approval.
  
   
• MEN 9: Modification of the general electrical services law to amend rules, in areas such as rates, governing medium-size grid systems, today classed as those with installed generation capacity of under 200MW, to permit the incorporation of hydrogen projects. Chile has three main medium-sized systems: Los Lagos, Aysén and Magallanes. An associated bill would need drafting and approving.
  
   
• MEN 10: Modification of supreme decree 125/17, on grid coordination and operation, to provide a framework for user-generators. Development is expected to take seven months prior to being submitted to the comptroller general for approval.
  
   
• MEN 11: Creation of a regulation for fueling stations that dispense hydrogen, other types of fuels, and electricity. Development is expected to take 27 months prior to being submitted to the comptroller general for approval.
  
   
• MEN 12: Creation of a regulation for hydrogen-natural gas blend quality. Development is expected to take 24 months prior to being submitted to the comptroller general for approval.

Health ministry 

According to the Gantt chart, work on SAL 2 got underway this year and work on SAL 1 will start in 2025.

• SAL 1: Work involves analyzing where modification of supreme decree 43/15, on storage of hazardous substances, is needed in light of new storage activity in the sphere of green hydrogen and its derivatives. Associated environmental and sectorial permitting guidelines will be amended to standardize technical criteria. Development is expected to take 24 months.
  
   
• SAL 2: Work involves analyzing whether supreme decree DS594/99, which concerns workplace health and environmental conditions and is being updated, also needs tweaking in light of scientific and technological advances associated with the green hydrogen industry. Development is expected to take 24 months.

Transport and telecommunications ministry 

According to the Gantt chart, work on MTT 1 and MTT 2 will start in 2H25. 

• MTT 1: Analyze whether decree 298/94, which governs the transport of hazardous substances on public roads, needs amending and, if so, issue associated guidelines on how to do this. Development is expected to take up to 24 months. Twelve months are earmarked for analysis and a further 12 months for drawing up the changes, if this is deemed necessary.
  
   
• MTT 2: Analyze existing technical rules and establish what amendments are needed for the homologation of hydrogen fuel-cell vehicles. While work is underway, vehicles can nevertheless be homologated on a case-by-case basis. Chile has homologated a hydrogen fuel cell car, the Toyota Mirai. A period of 12 months is earmarked for studies work and publication of associated technical rules. 

Mining ministry 

According to the Gantt chart, work on MIN 1 got underway this year and is due to conclude by the end of 2025.

• MIN 1: Analyze findings from projects involving the use of hydrogen as a fuel in the mining sector. Associated safety rules will be incorporated into supreme decree 132/02 and clarity provided on requisites for vehicles in underground mines. A period of 30 months is earmarked for the work.

The full working plan can be downloaded from the Documents box in the top-right corner of the screen.