Chile – $50 million for green hydrogen development

Chile’s economic development agency CORFO has selected six projects that will receive $50 million in funding to advance the development of a national green hydrogen industry.

The six projects, the first to be supported under the country’s green hydrogen strategy, are expected to attract a total of $1 billion in investment and to develop an electrolyser capacity of 388MW producing more than 45,000t of green hydrogen annually.

Overall, the projects should lead to CO2 emissions reductions estimated at more than 600,000t per year.

“The projects we are supporting are equivalent in size to what is currently in operation globally,” said Pablo Terrazas, Corfo Executive Vice President.

“The objective of this call is to be the starting point to accelerate the development of the green hydrogen industry in Chile, which will be key to moving towards carbon neutrality by 2050 and to meet the goal that we have set to be leaders in the production of this fuel from our country to the rest of the world.”

The six projects, which were selected from a dozen proposals, are to be located throughout the country and across various industries.

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Faro del Sur presented by Enel Green Power Chile will be located in the Magallanes region in the south and will produce 25,000t of green hydrogen per year with the installation of 240MW of electrolysers and electricity supply from a local wind farm. The green hydrogen is expected to be sold to HIF Chile, which will produce e-methanol and other e-fuels for export to Europe.

Antofagasta Mining Energy Renewable (AMER), an initiative from Air Liquide in the Antofagasta region in the north, is aimed to produce 60,000t per year of e-methanol from renewable energy via green hydrogen and CO2 capture with an 80MW electrolyser.

HyEx – Green Hydrogen Production led by Engie also in the Antofagasta region seeks to implement a 26MW industrial pilot scale plant for the generation of 3,200t of green hydrogen. This green hydrogen will be supplied to the explosives company Enaex for the production of green ammonia.

Hidrógeno Verde Bahía Quintero led by natural gas company GNL Quintero plans the development and operation of the first large scale green hydrogen plant in the central zone of Chile in the Valparaíso region. With an electrolyser capacity of 10MW, production is expected of 430t of green hydrogen per year.

HyPro Aconcagua proposed by German engineering company Linde GmbH also in the Valparaiso region intends to replace a part of its current grey hydrogen production at the national petroleum company ENAP’s Aconcagua refinery. An output of 3,000t of green hydrogen per year is planned from a 20MW capacity.

H2V CAP from the mining company CAP seeks to implement a plant with 20MW of electrolyser capacity producing 1,550t of green hydrogen annually in the Biobío region, which is to the south of Santiago.

As a first step in the development of the projects, at least 10MW of capacity of each must be in operation by the end of 2025.

For the record the project awards are Faro del Sur $16.9 million, AMER US$11.8 million, HyEx – Green Hydrogen Production US$9.5 million, Hidrógeno Verde Bahía Quintero $5.7 million, HyPro Aconcagua $2.4 million and H2V CAP $3.6 million.

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