National Strategy for Green Hydrogen

Country / jurisdiction: Chile · Year: 2020 · Status: In force · Level: National · Type: Voluntary

Chile's Ministry of Energy presented a hydrogen strategy with 3 main objectives:

- Have 5GW of electrolysis capacity under development by 2025;

- Produce the cheapest green hydrogen in the world by 2030;

- Be among the world's three largest hydrogen exporters by 2040.

Policy measures currently at the design stage include:

- accelerating R&D at research centers and universities

- financing pilot projects that may not be competitive initially while operating at a smaller scale

- accelerating permit processes

- creating economic incentives, potentially through carbon pricing mechanisms

- planning land use and creating production hubs

- improving transportation infrastructure

- finding hydrogen offtakers domestically and abroad

Projects:

On 12-05-2021, the Regional Environmental Commission of Magallanes approved the Environmental Impact Statement related to the green hydrogen project Haru Oni. The initiative, led by the company Highly Innovative Fuels (HIF), consists of building a hydrogen-based fuel production plant in Magallanes, located in South Chile. The project aims to produce hydrogen powered by 3.4 MW wind turbines. In addition, the project involves a plant for the production of e-fuels (e-methanol and e-gasoline). The expectations for the production levels are: 350 tons of crude methanol per year, 130,000 litres of gasoline per year and 16 tons of carbon-neutral liquefied gas from 2022.

International agreements:

Chile has signed several international agreements with foreign countries to strengthen its hydrogen industry. The countries involved are:

- Germany, on 29-06-2021. The joint agreement between the two countries has the objective of enhancing cooperation in green hydrogen project development. Experience and knowledge will be exchanged through the creation of a working group, that will also establish a regulatory framework. The aim of the group is also to develop low-carbon certification systems.

- The Netherlands, on 01-07-2021. The joint agreement between the two countries aims at establishing green hydrogen import-export corridors. It also seeks to align the investment agenda and to improve private companies collaboration.

- Belgium, MoU signed to enhance green hydrogen production, in cooperation with the ports of Antwerp and Zeebrugge. The two ports aim to become the main hubs for hydrogen imports to Europe.

- Korea, on 9-11-2021, MoU signed to expand cooperation in the low-carbon hydrogen sector and exchange technologies of producing, storing, transporting, and usage of clean hydrogen.

In 2022, Government has awarded USD 50 million for green hydrogen projects. It is estimated that the awarded projects will attract investments of USD 1 billion, with an electrolysis capacity of 388 MW and size equivalent to what is currently in operation worldwide.

Official source: https://energia.gob.cl/sites/default/files/national_green_hydrogen_strategy_-_chile.pdf