Chile electrolyzer production call draws 9 expressions of interest

Chile’s state development agency Corfo received nine expressions of interest in carrying out electrolyzer projects in the country.  

Six of them involve building plants with annual installed electrolyzer production capacity of 0.5-1GW, with investment ranging from US$50-US$100mn, Corfo said in a statement. 

Investors are mulling three different types of electrolyzer technology: polymer electrolyte membrane, alkaline and solid oxide.

For each gigawatt of electrolyzer production capacity, an estimated 100 jobs would be created and around 20,000m2 of land used.

Via the process, authorities identified potential Chilean, Spanish, Italian, Belgian, US and Chinese investors, and gained perspectives on facets including public instruments, research and development, human resources and supply chains. 

Among those that presented expressions of interest were local company Chileinox and Italian firm Industrie De Nora, BNamericas has learned. The other interested parties signed confidentiality agreements.

Building local production capacity – which would help trim logistics costs and supply chain risk – is deemed vital to help keep Chile’s competitive edge sharp and support local industrial development.

The call that resulted in the expressions of interest was “key to outlining the map of interest from the private sector and the challenges faced by suppliers of the green hydrogen value chain and investors and, mainly, it is an opportunity for more intense productive activities to be developed in Chile, with participation of or links with the local industry and supporting the creation of better jobs,” Corfo executive VP José Miguel Benavente said in a statement. 

The next phase in the process involves launching a request for proposals to obtain project details.

Corfo has built a US$1.0bn financing facility – due to be launched next year – to help de-risk green hydrogen industry projects and trim the cost of capital.

Under a green hydrogen production strategy, Chile is aiming to have 5GW of electrolysis capacity built and under development by 2025 and 25GW by 2030. An associated green hydrogen roadmap is due this half.

Blessed with abundant renewable energy resources, vital to producing the large amounts of power needed at a low cost, the country forecasts over US$150bn in green hydrogen projects that could be built by 2030. The bulk of investment targets Chile’s northern and southern regions. 

In related green hydrogen news, Chile’s national assets ministry awarded a plot of land for a project. Officials granted company Parés y Álvarez Servicios Profesionales the rights to use a 13.5ha area in Calama district, Antofagasta region, for 40 years.

“The concession is awarded to execute and develop a green hydrogen project for the Antofagasta mining district,” a notice in Chile’s official gazette states.

Elsewhere on the map, Corfo is offering 120mn pesos (US$150,000) in subsidies for up to three projects that help Biobío region unlock its green hydrogen potential. Offers are due by August 17 and the details can be seen here, in Spanish.