Chile's Sustainable Fuels Pilot Project: Powering Up with Green Hydrogen
Key Ideas
  • Chilean sustainable fuels pilot project, Power-to-MEDME, seeks offtakers for its output, aiming to produce methanol and derivative dimethyl ether from green hydrogen and captured CO2.
  • The project, led by Fraunhofer's Chilean branch and Linde, with financial support from Berlin, plans to build a $90mn production facility in the Antofagasta region, drawing power from a concentrated solar plant.
  • Offtaker challenges exist due to the initial cost competitiveness of green hydrogen and derivatives against fossil fuels, but the project aims to target mining firms to reduce emissions from their fleets.
  • The project involves a 12MW electrolyzer plant, with potential to scale up production and reduce unit costs, aiming to play a vital role in building Chile's green hydrogen economy and easing water demand in the arid region.
The article discusses a groundbreaking sustainable fuels pilot project in Chile named Power-to-MEDME, which is focused on producing methanol and derivative dimethyl ether (DME) using green hydrogen and captured carbon dioxide. The project, led by Fraunhofer's Chilean branch and Linde, with financial support from Berlin, is entering its final investment decision phase in 2025. The production facility, estimated at $90mn, is planned to be built in the Antofagasta region and could potentially be located at the concentrated solar plant Cerro Dominador. The project aims to address the challenge of initial cost competitiveness of green hydrogen by targeting mining firms as potential offtakers, offering them a fuel alternative to reduce emissions from their fleets. The Power-to-MEDME project involves a 12MW electrolyzer plant that can produce 5,000t/y of DME, with plans for potential production scaling and reduced unit costs. Additionally, the project aims to contribute to building Chile's green hydrogen economy and reduce water demand in the arid region by recycling water extracted from the production process. Overall, the project aims to play a crucial role in the energy transition towards sustainable fuels and the development of a green hydrogen economy in Chile.
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