If it’s green hydrogen, the world starts with Chile. This clean energy source is a key component of the global energy transition, and Chile is positioning itself as a leading player in this emerging industry. Not only does the country have optimal conditions for its production, but it also holds the potential to become one of the world’s top exporters of green hydrogen.
A Clean Energy Source for the World
Chile possesses exceptional natural advantages for renewable energy production. In the north, the Atacama Desert boasts the highest solar radiation levels, making it an ideal location for large-scale solar power generation. Meanwhile, the country’s extreme south experiences some of the world’s strongest and most consistent winds, providing an unparalleled opportunity for wind energy production.
This unique combination allows Chile to generate renewable energy at a scale up to 70 times greater than its national demand, a fundamental factor in developing green hydrogen in Chile. By leveraging this vast renewable energy potential, the country can produce green hydrogen at highly competitive costs, positioning itself as a significant global supplier.
According to projections, Chile could become the world’s most competitive green hydrogen producer by 2030. The country aims to solidify its leadership with a projected production of 160 million tons of green hydrogen by 2050.
A Strategic Destination for Investment
Several additional factors have made Chile an attractive hub for green hydrogen development. According to the World Bank, the country has built a robust and reliable investment ecosystem supported by clear regulations, an open economy, and a reputation as the best business climate in Latin America.
The government introduced the National Green Hydrogen Strategy in 2020, recognizing the potential of green hydrogen in Chile. This roadmap was designed to promote investment, establish the necessary infrastructure, and create regulatory frameworks to support the industry’s growth. In 2023, this strategy was further strengthened by the Green Hydrogen Action Plan 2023-2030, which outlines 81 concrete measures to accelerate the sector’s expansion.
Chile’s commitment to fostering a favorable environment for green hydrogen investment is reflected in the numerous incentives provided to businesses and international investors. These include public-private partnerships, tax benefits, and funding opportunities for research and development. As a result, global energy companies and technology firms are increasingly considering Chile as a top destination for green hydrogen projects.
A Rapidly Growing Industry
Green hydrogen in Chile is no longer a distant vision but a reality. The industry is developing remarkably, with 88 projects announced across different country regions. These projects span key locations such as Antofagasta, Magallanes, Atacama, Coquimbo, Valparaíso, the Metropolitan Region, O’Higgins, Biobío, Ñuble, and Aysén.
Five of these projects are currently undergoing environmental evaluation, and three have already received approval. While most projects remain pre-feasibility, 10 initiatives have successfully entered pilot operation.
One of the most notable projects is Haru Oni, developed by HIF Global, a pioneer in e-fuel production. This groundbreaking initiative has already exported over 100,000 liters of synthetic fuels to Europe and the United States, demonstrating Chile’s ability to play a crucial role in the global clean energy market.
The total investment in Chile’s green hydrogen developments exceeds $5 billion, further consolidating the country’s position as a global leader in this innovative industry. With ongoing support from both the government and private sector, the green hydrogen industry in Chile is expected to continue its rapid expansion over the coming decades.
The Role of Green Hydrogen in Chile’s Economy
The rise of green hydrogen in Chile is not just about reducing carbon emissions—it also represents a significant economic opportunity. The industry is projected to create thousands of jobs in engineering, construction, energy production, and technology development. Additionally, it will drive significant industrial innovation, encouraging the creation of new technologies and services associated with hydrogen production and storage.
Furthermore, green hydrogen will enable Chile to decarbonize key industries, such as mining, transportation, and manufacturing. Using green hydrogen as an alternative fuel, these sectors can significantly reduce their environmental impact while improving long-term sustainability.
Exporting Green Hydrogen to the World
Chile’s ambition extends beyond domestic consumption—it aims to become a leading exporter of green hydrogen and its derivatives. The country is already discussing establishing long-term agreements with international markets, including Europe, Asia, and North America, to supply green hydrogen and hydrogen-based products such as ammonia and synthetic fuels.
One of the primary advantages of green hydrogen in Chile is its ability to provide energy security to countries seeking reliable and sustainable energy sources. As the global demand for hydrogen increases, Chile is well-positioned to supply international markets with competitively priced, high-quality green hydrogen.
Infrastructure and Technological Advancements
Developing a strong hydrogen export infrastructure is a key priority for Chile. The government and private sector work together to enhance ports, pipelines, and transportation networks to facilitate large-scale hydrogen exports. Additionally, Chile is investing in research and innovation to improve hydrogen storage technologies and increase production efficiency.
The country is also collaborating with international partners to advance hydrogen-related technologies. Agreements with Germany, Japan, and the United States have been signed to promote research and knowledge exchange in electrolysis technology, hydrogen transportation, and fuel cell applications.
A Global Leader in Green Energy
Chile’s commitment to green hydrogen aligns with its broader sustainability goals. The country has set an ambitious target of achieving carbon neutrality by 2050, and green hydrogen will play a critical role in reaching this objective. Chile is positioning itself as a global leader in clean energy innovation by embracing renewable energy and hydrogen production.
With vast renewable energy resources, a strong regulatory framework, and growing international partnerships, Chile is on the fast track to becoming one of the world’s most important green hydrogen producers. As the industry continues to expand, Chile’s leadership in the global energy transition will become even more pronounced, helping to reshape how the world produces and consumes energy.
Conclusion
The development of green hydrogen in Chile is a game-changer for the country and the world. With ideal natural conditions, strong government support, and increasing international investment, Chile is well on its way to becoming a powerhouse in the global hydrogen economy. As new projects take shape and exports begin to scale, green hydrogen in Chile will play a pivotal role in transforming the global energy landscape, driving sustainability, and supporting the world’s transition to cleaner, renewable energy sources.