These are the initiatives launched by Enel Green Power, Linde, Engie, Air Liquide, GNL Quintero, and CAP that were chosen for co-financing in this call with the goal of accelerating the growth of this industry in Chile and thereby placing the country as a global leader.
Corfo selected six of the twelve proposals submitted in the first call for green hydrogen production plants in Chile, with the goal of expediting the implementation of these initiatives in the country’s north, center, and south, in order to address climate change challenges while also promoting investment in clean energy, job creation, and entrepreneurship opportunities at the local level.
Chile, with the maximum solar radiation in the world and an exceptional wind resource, is one of the countries that stands out for its potential to generate and export green hydrogen globally, owing to its advantages in renewable energy generation. “The projects we are currently funding have an electrolysis capacity of 388 MW, which is comparable to what is currently in operation globally. This paves the way for future attempts to build new capacities in Latin America to reach carbon neutrality, positioning Chile as the region’s first “Pablo Terrazas, Corfo’s executive vice-president, stated.
He stated that “It is really encouraging that the ideas submitted consider explosives and mining transportation, industrial operations in the steel industry, domestic heating, industrial heating, and green fuels, among other applications. Additionally, we underline that all solutions incorporate desalination or boost water efficiency; and are consistent with the National Green Hydrogen Strategy, as the initial stages include utilization in a variety of national applications before expanding and achieving export “‘.
The selected concepts include the “Faro del Sur Project,” proposed by Enel Green Power Chile S.A., which will generate 25,000 tons of green hydrogen per year in the Magallanes Region through the installation of 240 MW of electrolyzers and the power supply of a wind farm in the region. The green hydrogen will be sold to HIF Chile, which will use it to manufacture emethanol and egasoline for export to Europe.
Second place goes to “HyPro Aconcagua,” a proposal presented by the company Linde GmbH to install a project to replace a portion of the current gray hydrogen production at the Aconcagua oil refinery in the Valparaiso Region, which is owned by Empresa Nacional del Petróleos (ENAP). This project is expected to create 3,000 tons of green hydrogen per year with a capacity of 20 MW.
Another project, led by Engie S.A., is “HyEx – Green Hydrogen Production,” which aims to develop an industrial pilot-scale facility capable of producing 3,200 tons of green hydrogen per year from a 26 MW electrolysis capacity in the Antofagasta Region. This green hydrogen will then be provided to Enaex for the manufacturing of green ammonia, resulting in an annual CO2 reduction of over 30,000 tons.
Additionally, “Antofagasta Mining Energy Renewable (AMER)” is an Air Liquide S.A. effort that aims to manufacture 60,000 tons of e-methanol per year using renewable energy, green hydrogen, and CO2 extracted from a fixed source. It will be installed in the Antofagasta Region and will have an electrolyzer capacity of 80 MW.
Another proposal, “Green Hydrogen Baha Quintero,” sponsored by GNL Quintero S.A., envisions the development, building, and operation of Chile’s first large-scale green hydrogen plant in the Valparaso Region. The project will have a 10 MW electrolyzing capacity installed, with a projected annual production of 430 tons of green hydrogen.
Finally, CAP S.A. will develop its proposal “H2V CAP,” which aims to build a green hydrogen plant with a 20 MW electrolyzer capacity in the Biobo Region, capable of producing 1,550 tons of green hydrogen per year and avoiding the emission of more than 161,000 tons of CO2.
“The selected ideas will attract $1 billion in investment and are expected to generate more than 45,000 tons of green hydrogen per year, equating to a CO2 reduction of more than 600,000 tons per year. This satisfies the call’s objective of accelerating the development of Chile’s green hydrogen industry, which will be critical in achieving carbon neutrality by 2050 and meeting the government’s goal of being leaders in the production of this fuel from our country to the rest of the world “Pablo Terrazas stated.
These pioneering projects will confront numerous obstacles that must be overcome through innovation, the application of R&D, and productive technical development, which will enable the attraction and generation of knowledge and sophisticated human capital at the national level.
The selected initiatives must be operational by December 2025 at the latest and will receive a total development contribution of US$50 million, provided they install the agreed electrolyzer capacity and adhere to the terms and conditions.
