Chile is positioning itself as a global leader in green hydrogen, with more than 70 projects under development and investment projections of $45 billion by 2030 and $330 billion by 2050, according to the Ministry of Energy’s 2022 report Green Hydrogen, a Country Project.
That figure represents 130% of Chile’s 2021 GDP, underscoring the scale of the transformation underway.
Fifteen of the projects already have operational start dates, signaling that Chile’s energy transition is moving from vision to execution. The government expects the annual value of green hydrogen and its derivatives to reach $33 billion by 2050, with $24 billion coming from exports, strengthening the country’s role in global energy trade.
Green hydrogen’s appeal lies in its capacity to decarbonize hard-to-electrify sectors. “It allows us to address heavy transport and high-temperature industries while acting as an efficient and versatile energy storage system,” said Víctor Paredes, Director of Power Systems for Chile, Peru, and Bolivia at Schneider Electric. The framing of hydrogen as both fuel and storage tool aligns with global strategies to expand renewable penetration while ensuring supply reliability.
Chile’s ambition is unfolding against a backdrop of accelerating international demand. Deloitte’s Global Green Hydrogen Outlook 2023 projects that by 2030, hydrogen production will reach 170 million tons, with annual sales of $642 billion. By 2050, volumes are expected to climb to 600 million tons, driving more than $1.4 trillion in global sales—a 252% increase compared with 2030 projections.
Positioning itself as a supplier in this market, Chile is leveraging its abundant solar and wind resources, which underpin competitive production costs and export potential.
Infrastructure and Technology Demands
Reaching those targets, however, depends on scaling infrastructure and embedding digital resilience across operations. Schneider Electric, already carbon neutral in Chile, is applying its experience to integrate renewable energy with storage solutions. These systems are crucial to mitigate intermittency and enable round-the-clock hydrogen production.
The company also deploys tools such as digital twins, real-time monitoring, and AI-enabled optimization platforms, designed to lower the levelized cost of hydrogen (LCOH) and strengthen operational reliability. “Efficient production requires a robust, digitalized energy infrastructure. From smart grid management to real-time monitoring, technology is essential to scaling this model,” Paredes noted.
Beyond energy metrics, Chile frames green hydrogen as an economic diversification strategy. The expected export revenues, coupled with local job creation and technology transfer, position the sector as a pillar of industrial policy.
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