New large-scale hydrogen project surfaces in southern Chile

Chile’s energy ministry has unveiled plans by French player Total Eren to build a large-scale green hydrogen production hub in Magallanes region, in the far south of the country.

The project, named H2 Magallanes, would join HIF’s Haru Oni project in the same region and two others: one by Austria Energy and another by local players. Combined they are expected to generate investments for the region of US$15bn to install 10GW of electrolyzer capacity and 13GW of renewable energy capacity, the ministry said in a release.

Total Eren plans to install 10GW of wind capacity and 8GW of electrolyzers, a desalination plant, an ammonia production plant (which simplifies the overseas transport of hydrogen) and port facilities, mimicking the scale and structure of other export-focused projects announced in Asia and Australia. 

The firm expects to start construction in 2025 and produce its first molecule in 2027, as the international hydrogen trade matures.

If built, the project would bring Chile a significant way forward towards its goal, laid out in its long-term national energy strategy, of having 25GW of electrolyzer capacity in place by 2030 - and would single-handedly achieve the goal of having 3GW in construction in 2025. It would also become the country’s largest hydrogen production facility out of those that have been announced.

Chile's US$50mn financing round for green hydrogen pilot projects is due to be awarded next year by state-run development agency Corfo. The round is also expected to help authorities test the waters for future hydrogen development regulation.