Chile’s environmental approvals drop in September

Project approvals by Chile’s environmental review service (SEA) dropped from 32 in August to 28 in September, while associated investments fell from US$2.18bn to US$1.56bn.

The decline was mainly caused by fewer energy, real estate, environmental cleanup and ‘other’ projects, according to SEA’s monthly report.

Fourteen energy projects received approval (known as an RCA) last month, two more than August. But planned investments dropped from US$1.74bn to US$1.31bn.

Mining saw two approvals, one more than the previous month while proposed investments increased from US$10.5mn to US$32.2mn.

Real estate projects went from eight approvals and US$271mn in August to five and US$172mn last month.

Projects classified as ‘others’, which include areas such as datacenters and green hydrogen, went from two approvals to one, while planned investments fell from US$46.6mn to US$230,000.

There were no approvals for transport and water infrastructure projects, while port infrastructure saw one positive RCA in September involving US$15.6mn.

The biggest projects to receive the environmental nod last month were:

Halcón 4 transmission line and battery energy storage system (US$175mn)
Arena battery energy storage system (US$300mn)
Don Darío photovoltaic park (US$180mn)
Culenco wind farm (US$305mn)

SUBMISSIONS

A total of 42 projects were presented to the SEA for evaluation last month, one more than in August. Planned investments, however, rose from US$2.13bn to US$2.57bn thanks to a steep rise in energy projects that offset decreases in water infrastructure, real estate and mining. 

There were 11 energy projects submitted during September, one less than the previous month, though proposed investments increased from US$1.39bn to US$2.13bn.

Mining projects increased from five to six but investments dropped from US$44.6mn to US$14.3mn.

There were no submissions for water infrastructure during September compared to three projects involving US$120mn the previous month.

Neither were there any port infrastructure projects submitted, just like August. Transport infrastructure, meanwhile, only registered one project involving US$18mn during September, following no proposals the previous month.

Real estate rose from six submissions in August to 11 in September, though planned investments fell from US$311mn to US$209mn.

The biggest projects presented for environmental evaluation last month were:

Pueblo Hundido transmission line and battery energy storage system (US$400mn)
Camarico wind farm expansion (US$119mn)
Solar Oriente photovoltaic park (US$990mn)
Loma Verde Solar photovoltaic park (US$130mn)
Pillancó photovoltaic park (US$236mn)
Cálice transmission line and battery energy storage system (US$144mn)
Scala Huechuraba datacenter expansion (US$145mn)

2024 SO FAR

A total of 410 projects involving US$44.7bn were submitted for environmental review in January to September. In the same period last year, 424 proposals were presented with investments of US$26.9bn.

The main reason is the number of large projects related to green hydrogen, such as the US$11bn HNH Energy green ammonia project submitted in July.

Approvals in the first nine months of 2024 reached 228, up from 171 in the first three quarters of 2023. Planned investments rose from US$8.35bn to US$12.5bn with energy and real estate leading the way. 

Congress is currently reviewing a bill aimed at speeding up environmental review procedures.

The proposal was approved in general by the senate in June and was sent to the upper house’s environment committee.