Chile courting green hydrogen investors

Chile is planning new measures to attract green hydrogen investment as it seeks to be a global leader in the burgeoning industry, according to a senior energy ministry official. 

The government last year unveiled plans to have 5GW of electrolyzer capacity under development by 2025 and 25GW by 2030. 

"[We aim] to become one of the top three exporters of hydrogen and [its] derivatives on the planet and among the top five producers," Max Correa, Chile's head of fuels and new energy, said during the Hydrogen Americas Summit. 

"We are working strongly on regulations, permits, infrastructure, incentives, tax and bringing local value to our economy to make this dream of creating a national hydrogen industry a reality."

The Sebastián Piñera administration predicts Chile's green hydrogen market will be worth US$1bn a year by 2025, rising 15% annually to US$9bn in 2050 and paving the way for a multibillion-dollar export industry.

Energy and mining minister Juan Carlos Jobet told BNamericas last month that Chile is on track to be the cheapest green hydrogen producer in the world by 2030, benefiting from economies of scale and world class conditions for non-conventional renewable power generation. 

Chile is also banking on green hydrogen to help it achieve ambitious carbon reduction goals. 

According to Correa, green hydrogen will be used to decarbonize up to 27% of emissions, primarily from mining operations, refineries and the heavy transportation sector.

"Hydrogen is the Swiss army knife of renewables because it serves many purposes to decarbonize lots of different sectors," Correa said. 

"Our projections say that by the year 2030 we will be able to produce cheap, competitive hydrogen that will displace even gray hydrogen coming from natural gas."

In December, New York-based consulting firm McKinsey & Company estimated that global electrolyzer installed capacity would reach 43.9GW by 2030, up from a previous forecast of 27.5GW six months earlier.

Correa said Chile has a unique opportunity to position itself as a flag bearer for green hydrogen development. 

"Projections have increased rapidly in the past year. It will require lots of investments in green jobs, human capital and bringing welfare to nations," he added.