Chile’s Enap, international firms ink Magallanes hydrogen logistics agreement

Chile’s state hydrocarbons company Enap and six international energy firms signed an agreement to convert an existing port terminal in Magallanes region into a green hydrogen logistics complex.

Enap, which has multiple oil and gas facilities and pipelines in the windswept jurisdiction, has joined forces with Total Eren Chile, HIF Chile, FreePower Group, Grupo EDF, RWE and HNH Energy.

The deal concerns Enap’s Gregorio maritime terminal, and the objective is to support the execution of various green hydrogen production projects planned for the region.

First-phase work under the agreement involves conducting feasibility studies to evaluate construction and operation requirements. 

Facilitating the importation of the likes of wind turbines and the export of hydrogen and its derivatives are among various areas that need tackling to help unlock Magallanes’ hydrogen potential.

“Along these lines, we are convinced that public-private work is the way to facilitate the energy transition that Chile needs today,” Enap chief Julio Friedmann said in a statement.

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Adaption and conversion of existing infrastructure – to not only trim development times but also reduce the environmental footprint – is part of Enap’s hydrogen strategy. The company is advancing a conversion project at Laredo port with Total Eren, HIF Chile and HNH Energy, and has its Cabo Negro and Bahía Gente Grande assets on its adaption radar.

“This new step in public-private collaboration is a clear example of the associative work that we intend to carry out in Magallanes, and that will allow us to set up a new maritime terminal, which will be based on the company's historical facilities, but adapting them to the demands of the new industry,” said Antoine Liane, CEO of French energy company Total Eren’s Chilean operations.

Total Eren has a multiple gigawatt-scale project planned for the region, H2 Magallanes.

Enap’s corporate manager for development and strategic planning, Nicolás Correa, said at a recent supplier event: “We’ve got quite an ambitious plan for how we’re going to ride the energy transition wave. It’s Enap infrastructure that, in the future, will also mobilize, at the end of the day, new fuels.”

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Roughly 30GW of hydrogen and derivatives projects are targeting Magallanes, according to a recent Enap presentation. 

In parallel, Enap is planning a green hydrogen pilot plant at Cabo Negro, scheduled to enter service in 2025. Officials have previously said others would be built at other industrial sites, with an objective of developing know-how and exploring different products.

Magallanes is already home to HIF Global's pioneering Haru Oni demonstration plant, which Enap is involved in as logistics partner. Haru Oni harnesses the power of the wind to make green hydrogen that, in turn, is used to make synthetic gasoline. HIF plans to scale up the project to eventually start large-scale exports, likely to Europe.

An associated project – Faro del Sur – won an electrolyzer acquisition subsidy from development agency Corfo and is penciled in to enter service by the end of 2025, a challenging goal given the project still needs to obtain environmental and sectoral permits.