A cooperation agreement between Germany’s GIZ and Acciona Nordex Green Hydrogen (ANGH2), under the H2Uppp initiative, marks a move to develop the Frontera project – designed to produce green hydrogen for Chilean industry and, crucially, for export to Germany.
Anchored in Tierra del Fuego’s Magallanes region, the Frontera project aims to leverage wind-rich terrain for large-scale electrolysis, targeting not only domestic hydrogen use but also export pathways to Europe—particularly Germany.
The agreement falls under the strategic framework of the German Federal Ministry for Economic Affairs and Energy (BMWK), whose H2Uppp program is tasked with facilitating the early-stage development of hydrogen infrastructure in partner countries. The Magallanes region is a logical starting point: its wind resources are among the best globally, and its geographical isolation minimizes land-use conflicts. Still, infrastructure and supply chain challenges—ranging from port capacity to grid connectivity—could constrain timelines and project economics unless addressed holistically.
The Frontera project involves a wind farm directly powering a hydrogen electrolysis facility. While the installed capacity and expected production volumes have not been publicly disclosed, the project’s focus on producing green ammonia for export points to a scale that goes beyond pilot.
GIZ’s involvement aims to de-risk this equation. According to Javier Ortiz de Zúñiga, H2Uppp’s Latin America coordinator, the program is delivering both financial and technical assistance to ensure compliance with international standards and facilitate coordination across value chain actors. The reference to international standards is critical; the EU’s Renewable Energy Directive (RED II/RED III) and its associated delegated acts on renewable fuels of non-biological origin (RFNBOs) will dictate market access for hydrogen-derived fuels into Europe.
Beyond infrastructure and certification, the cooperation framework includes workstreams on circular economy integration and community engagement. This broader scope is essential. In Tierra del Fuego, where Indigenous communities and fragile ecosystems coexist with industrial aspirations, social license and environmental stewardship are non-negotiable. Yet, implementation remains a moving target. While the agreement outlines ambitions around local employment, technology transfer, and territorial development, specific KPIs or governance structures for these objectives are not yet publicly detailed.
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