More than half of the first production of a green hydrogen project in Chile is believed to have already been sold, according to its supporters.

GNL Quintero, the operator of Chile’s Quintero LNG terminal, has inked preliminary off-take agreements with various clients with its Spanish partners Enagas and Acciona Energa. According to a source close to the project, these agreements cover 70% of the hydrogen that the plant will produce in its initial phase of operation.

Last month, GNL Quintero, Enagas, and Acciona Energa announced intentions to construct a green hydrogen production facility at the Quintero LNG port. They expect to spend around $30 million on the plant, which will produce 430 tonnes of green hydrogen per year at first, increasing to 640 tpy later. Production is expected to commence in late 2024 or early 2025, with the product being loaded into tanker trucks and delivered to local customers.

The facility will include a hydrolysis unit that will be powered by Acciona Energa’s wind and solar producing capacity in Chile, which totals 10 MW. It will get power from Chile’s national transmission grid.

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