Data Insights: Chile’s green hydrogen projects

The BNamericas project database contains 24 early-stage Chilean green hydrogen projects, with capex disclosed for 16. The disclosed outlay totals US$40.8bn.

(A document containing the full list can be downloaded from the box in the top-right corner of the page.)

Green hydrogen industry projects have started entering Chile’s environmental review system.

Pilot projects are operating, the biggest among them HIF’s Haru Oni e-fuels facility in far south Magallanes region. 

For some smaller initiatives planned for brownfield sites, going through the environmental review phase is voluntary. GNL Quintero has done this for its Quintero hydrogen production project.  

According to a June energy ministry report, four production projects are under review at environmental review agency SEA.

Project: Cabo Negro
Region: Magallanes
Output: E-fuels
Capex: US$830mn
Owner: HIF

Project: Green hydrogen for Calama mining district
Region: Antofagasta
Output: Green hydrogen
Capex: US$423mn
Owner: Susterra

Project: Quintero production plant
Region: Valparaíso
Output: Green hydrogen
Capex: US$30mn
Owner: GNL Quintero

Project: Volta
Region: Antofagasta
Output: Green ammonia
Capex: US$2.5bn
Owner: MAE

A wind park – the US$500mn Faro del Sur, linked to the planned Cabo Negro plant – is also under evaluation.

Chile’s top 5 projects by disclosed capex

Based on disclosed capex, Chile’s five biggest projects involve combined outlay of US$34bn, according to BNamericas data. They are all geared to producing green ammonia, chiefly given its relative ease of transport and storage compared with green hydrogen. 

Project: H2 Magallanes
Owner: Total Energies Chile
Capex: US$15bn
Output: Green ammonia
Region: Magallanes

Project: Gente Grande
Owner: Haura Energy-TEG Chile
Capex:US$8bn
Output: Green ammonia
Region: Magallanes

Project: HNH Energy
Owner: Copenhagen Infrastructure Partners - Austria Energy - Oekowind
Capex: US$5bn
Output: Green ammonia
 Region: Magallanes

Project: Vientos Magallánicos
Owner: RWE Renewables Chile
Capex: US$3bn
Output: Green ammonia
Region: Magallanes

Project: Hoasis
Owner: TCI Chile
Capex: US$3bn
Output: Green ammonia
Region: Antofagasta

Overall pipeline

More than 65 projects have been announced publicly in Chile, although details available for most are still limited. 

According to April data from sector chamber H2 Chile, 38% are in northern region Antofagasta and 28% in Magallanes. Nationally, almost half of the projects are geared exclusively to the domestic market and around a quarter just to exports.

A key challenge today for projects is making them bankable and securing offtakers.

Regional investor James Calaway, behind Volta, said recently that plunging solar PV and battery costs were improving project economics.

Green ammonia project Volta is the most advanced of its kind in Chile.