Chile's Green Hydrogen Boom: Six Projects Worth Over US$25bn in the Pipeline
Key Ideas
- Chile is seeing a surge in green hydrogen sector projects with over US$25bn investments, including the recent US$10bn AES Andes INNA project in Antofagasta.
- The INNA project aims to address challenges like cost reduction, securing offtakers, and navigating through permitting and infrastructure requirements for successful implementation.
- Targeting both domestic and export markets, the project includes plans for green hydrogen production, ammonia derivative for exports, and utilizing renewables like solar and wind power.
- AES Andes INNA project involves various components such as solar PV parks, wind farms, transmission lines, storage infrastructure, desalination plants, hydrogen production facilities, and an ammonia plant.
In Chile, the green hydrogen sector is experiencing a significant boom with six projects under environmental review, totaling investments exceeding US$25bn. The latest addition to this lineup is the AES Andes INNA project, a US$10bn initiative set for the Taltal district in the industrial hub of Antofagasta. The project, spearheaded by AES Andes, faces challenges typical of green hydrogen ventures such as driving down production costs, securing offtakers, and clearing regulatory hurdles. The successful presentation of the environmental impact study is considered a crucial step towards project viability.
The INNA project, which includes plans to commence construction in January 2027 if approved, aims to cater to both domestic and export markets. Domestically, green hydrogen is targeted for the mining industry's use, particularly in copper mining operations. For exports, the focus shifts to green ammonia, viewed as a more suitable derivative for long-distance transport in large quantities.
The project's scope is extensive, incorporating various components like solar PV and wind farms, transmission lines, storage infrastructure, desalination and purification plants, hydrogen production facilities, and an ammonia plant. AES has also partnered with Samsung C&T corporation for joint development.
Overall, the surge in green hydrogen projects signals a shift towards renewable energy sources and clean power generation in Chile's industrial landscape, with a focus on innovation, sustainability, and meeting the evolving energy needs of the future.
Topics
Green Hydrogen
Renewable Energy
Infrastructure
Investment
Regulations
Mining Industry
Construction
Project Development
Energy Planning
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