HIF submits US$830mn Chile e-fuels project for environmental review

The Chilean unit of sustainable fuels pioneer HIF Global is seeking an environmental license for an US$830mn production project planned for windswept Magallanes region.

Proposed for Punta Arenas district, the plant, dubbed Cabo Negro, would be geared to the production of e-methanol, e-gasoline and e-liquified gas, the former two products for export.

HIF, with multiple partners including German carmaker Porsche and local power generator Enel Green Power, has already built an e-fuels demonstration plant Haru Oni in Magallanes, the first of its kind in the world.

Work on Cabo Negro is penciled in to start in November 2024 and take up to 26 months, the project’s environmental impact study, produced by professional services firm GHD, states.

Associated wind project Faro del Sur, which would provide clean energy for the plant, will be “submitted shortly for environmental review,” it adds.

Faro del Sur was pulled from the review system last year following a dispute. At the time, the park was 325MW and involved investment of US$500mn.

ALSO READ: Work begins on energy strategy plan for Chile’s Magallanes region

In 2021, state development agency Corfo awarded an associated US$16.9mn subsidy to support electrolyzer acquisition. The project, and four others, are due online by the end of 2025.

ALSO READ: Chile’s early electrolyzer-manufacturing push

The feedstock would be green hydrogen produced via the electrolysis of water using wind power. Electrolysis capacity of 242MW is planned. Treated wastewater would chiefly be used, with the balance treated seawater. A battery storage system is also planned.

The filing of the project marks a milestone for Chile, which hopes to become a major exporter of green hydrogen and its derivatives. The roughly 30GW of projects planned for Magallanes chiefly involve production of e-methanol or green ammonia for export.

All eyes will be on the progress of the project – and Faro del Sur – through the permitting system, known for often being complex and lengthy. Permitting officials have nevertheless been preparing for hydrogen projects, and reform bills are in congress.

E-methanol would be made by combining green hydrogen with carbon dioxide, which HIF may obtain directly from the atmosphere or from wood biomass. A third option is importing it in cryogenic form. 

A proportion of e-methanol may then be processed to produce e-gasoline and liquified gas. E-gasoline can be used in petrol cars without any mechanical adaption work needed. Germany is a potential key market. E-methanol can be used as a chemical feedstock or fuel.

Founded in Chile, HIF is also planning an e-fuels plant in Uruguay. 

PRODUCTION, LOGISTICS

E-methanol production capacity is 173,600t/y. Production for direct export would be piped from storage tanks to dock No. 2 of state oil firm Enap’s Cabo Negro port. 

E-liquified gas would be produced from e-methanol. Capacity is 8,030t/y and dispatched via truck with capacity of 44m3 to Mardones port or another destination. 

E-gasoline capacity is 70,000t/y and would be piped via 16-inch duct from storage tanks to dock No. 1 of Cabo Negro.

Enap, HIF and other partners have announced plans to modify and expand existing logistics infrastructure in Magallanes to support the import of capital goods and the export of products. Enap produces hydrocarbons in the region and has refining, pipeline and port infrastructure in place. 

ARGENTINA

In related news, Argentine province Río Negro’s government submitted to the jurisdiction’s legislature a bill concerning green hydrogen.

The draft legislation approves a contract between company Eólica Rionegrina – a unit of state technology company Invap – and Australia’s Fortescue Future Industries.

The objective of the contract is advancing to build a wind park in Cerro Policía, under the framework of the province’s green hydrogen strategy.

The contract involves the sale to Fortescue of the draft project, associated studies and corresponding authorizations, the provincial government said in a statement.

Fortescue has previously announced a gigawatt-scale green hydrogen project for the windswept Pampas province. 

It adds that the “park installation aims to supply renewable, green and clean energy to the industrial plants that the investment company (Fortescue) intends to build in the Sierra Grande area.”

Getting the contract approved by the legislature would bolster legal certainty, provincial planning chief Daniel Sanguinetti said.

The province’s lawmakers have already passed associated bills in preparation and studies-phase work is underway. 

A federal hydrogen promotion bill is in congress. 

Other projects are planned for Argentina, in Tierra del Fuego and Buenos Aires provinces. 

A steadying of the macroeconomic ship and a favorable regulatory environment, including an easing of capital controls, is likely needed to help unlock Argentina's immense green hydrogen potential. The country has abundant wind and solar resources and lots of land.