Thursday, Aug 18, 2022
International Finance
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Chile plans green hydrogen production for $50 mn

Chile Hydrogen Production_IFM_Image
It is a part of a national strategy to become carbon neutral by the year 2050

Chile recently launched a tender that was announced earlier to begin green hydrogen production worth $50 mn according to the media. This is a part of a national strategy to become carbon neutral by the year 2050.

The announced tender is expected to award a sum of $30 million in financing to one or more projects that will install more than 10 MW of renewable energy generation capacity for the production of hydrogen before the end of 2025.

Tender documents state that Corfo’s total budget is said to allocate $50 million to be spent during the start of 2022. The financing can be accessed by local and international players all alike. The contest was a part of the strategy of the Chilean government to turn the country into a world-class hydrogen producer and an exporter of the same by 2040. The primary step is to install the initial capacity aimed at satisfying the local demand, especially from the refineries and mining industries by the year 2025.

During the previous phase, Corfo meant to test the industry’s interest in developing hydrogen projects. The state agency had received information of 18 projects for an estimated total investment of $12 billion in the Atacama and Antofagasta regions of northern Chile. To apply, the participants need not have taken part in the previous consultation phases.

Chile is said to attract hydrogen projects in large numbers because of the abundant nature of its wind and solar resources along with the already existing demand in the form of a developed mining industry. Additionally, the export potential to Asia via the Pacific Ocean is also considered significant for the growing hydrogen projects development in Chile.

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