Green Hydrogen Projects Driving Electricity Demand in Northern Chile
Key Ideas
  • Green hydrogen and derivatives projects in northern Chile are addressing climbing curtailment and boosting investment.
  • The new Kimal-Lo Aguirre transmission line and energy storage initiatives aim to alleviate curtailment challenges by 2030.
  • Challenges like limited system flexibility and high system costs are being addressed through innovative solutions like dedicated supply systems.
  • Local solar industry emphasizes the need for demand-side innovation to leverage renewable resources, reduce reliance on imported fuels, and decarbonize industrial production.
The article highlights the potential of green hydrogen and derivatives projects to become a significant source of electricity demand in northern Chile. The region is facing increasing curtailment of solar and wind output, impacting the finances of renewable energy producers. A new north-south transmission line, Kimal-Lo Aguirre, is set to enter service around 2030 to alleviate curtailment pressure, along with plans for energy storage buildout. Marco Vaccarezza from Fraunhofer emphasizes the importance of green hydrogen project offtake in addressing curtailment issues due to transmission limitations in Chile. The article discusses the challenges associated with curtailment, including limited system flexibility and high system costs, leading to considerations of isolated supply systems to drive down costs. Moreover, the local solar industry advocates for demand-side innovation to maximize renewable resources, reduce reliance on imported fossil fuels, and promote industrial decarbonization. The piece also mentions a specific dimethyl ether project, Power-to-MEDME, planned for Antofagasta, involving companies like Linde and Cementos Bío Bío. Overall, green hydrogen projects are seen as a solution to curtailment challenges, driving investment and innovation in Chile's energy sector.
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