Green Hydrogen Development in Chile's Magallanes Region: Fostering Local Suppliers and Providers
Key Ideas
  • Chilean researchers are collaborating to identify and address gaps in the supplier chain for green hydrogen projects in the Magallanes region.
  • The study aims to propose policy measures to strengthen local providers and incentivize investment in the region's services sector to support upcoming projects.
  • Efforts are being made to mitigate potential negative impacts of the industry's growth by preparing for an influx of workers and ensuring the availability of necessary services.
  • The development of green hydrogen projects in Magallanes is seen as a potential opportunity to boost exports and revitalize the region's economy.
Chilean researchers are conducting a study to support the development of green hydrogen projects in the southern Magallanes region. The study, commissioned by the Chilean economy ministry, aims to identify gaps in the supplier and provider chain and propose policy measures to enhance local capabilities. The focus is on ensuring that necessary services and products are readily available to support multiple planned projects, including green ammonia and e-fuels production. The study involves collaboration between Fundación Chile, Grupo Singular, and state entities to strengthen the region's services industry and prepare for the arrival of workers. The initiative also aims to leverage investment incentives, such as tax credits, to attract external companies to the region. The study emphasizes the importance of proactive measures to address local capacity limitations and outlines six key categories of services and inputs required for project development. International companies may initially provide sophisticated manufacturing and services until local competencies are developed. The potential growth of the green hydrogen industry in Magallanes is expected to boost exports and stimulate the economy, particularly in light of challenges faced by the region's salmon farming sector. Green hydrogen projects are progressing through the environmental review system in Chile, with two major projects planned for Magallanes. These initiatives are set to involve significant investments and require substantial wind generation and electrolysis capacities. Overall, the development of green hydrogen projects in the region is viewed positively, with stakeholders expressing optimism about the industry's potential benefits for the economy, environment, and society.
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