Chile's state development agency, Corfo, recently allocated grants totalling US$25.6 million to three electrolyzer production projects, with winning parties from China, Spain, and Chile. These projects, with an overall investment exceeding US$50 million, are part of Chile's efforts to build green hydrogen value chains and enhance local knowledge. By producing electrolyzers in Chile, the aim is to lower logistics costs associated with importing finished units. The first year of the contracts involves conducting studies, securing land, and forming partnerships, while the second year focuses on submitting electrolyzer specifications to start production capacity by 2026. Chile currently has around 70 green hydrogen projects, mainly in Antofagasta and Magallanes, with the Biobío region also showing promise due to local industrial demand and existing infrastructure. The initiative intends to meet the increasing demand for production plants in Chile, creating employment opportunities and expertise in electrolyzer maintenance. Green hydrogen is expected to play a vital role in Chile's decarbonization strategy, with potential for exporting derivative products like e-fuels and green ammonia. Key challenges in the industry involve project permitting, cost reduction, and securing offtakers. The winning projects plan to assemble alkaline and PEM electrolyzers of various capacities, with some critical components being imported while emphasizing local manufacturing. The initiative is seen as a significant step for Chile to establish a strong presence in the engineering manufacturing sector, fostering local linkages and high value-added production.