top of page

Green Hydrogen industry in Chile

Learn more about the national #H2G strategy, it´s impact, #technology and current status.

TIME'S RUNNING OUT, we are in a climate crisis

Chile is facing a pressing environmental challenge: 77% of its carbon dioxide (CO2) emissions stem from energy generation.

This alarming statistic underscores the critical need for a comprehensive shift towards sustainable and low-carbon energy practices to mitigate the impact of climate change and ensure a healthier future for both the environment and its citizens.

Chile, a country with abundant renewable resources

The most powerful solar radiation on the planet is found in northern Chile.

Capacity factors of up to 37% can be achieved in monofacial solar photovoltaic plants with 1-axis tracking.

Solar generation in the central part of Chile is already more competitive than fossil-powered electricity generation.

This renewable potential is located close to large consumption centers, gas grids, and logistical hubs, such as ports and distribution centers.

Winds in the far south end of the country are as strong inland as they are offshore.

120-meter-high wind turbines are able to achieve capacity factors of up to 75% on-shore.

National energy potential

A country rich in the energies of the future

The solar and wind power sectors are quickly maturing. In the past 6 years, Chile has increased the generation

capacity from these sources five fold and, by 2030 70% of the power grid is expected to be renewable.

The increasing investment in these energies, as well as in energy storage and transmission infrastructure, are a clear indicator of a decisive transition to a more sustainable power system.

Source: Ministry of Energy

The cheapest green hydrogen on the planet

Reductions in electrolyzer and renewable power costs will lead to highly competitive green hydrogen production for domestic use and export.

The increasing availability of green financing, strong corporate commitments to decarbonization, and the existing tax benefits for remote regions are additional factors that will contribute to the competitiveness of business models based on this clean fuel in Chile.

Green hydrogen produced in the Atacama Desert and in the Magallanes Region will achieve the lowest levelized cost of production* on the planet by 2030.

The quality and abundance of the renewable resources found in these regions will enable a large scale competitive production.

Does not consider compression, transport, and distribution costs,

which vary according to the end use of hydrogen.

Source:McKinsey & Co

In Chile, there are more than 41 Green Hydrogen projects across eight regions. Antofagasta represents 36% of the country's total with 15 projects, followed by Magallanes, which has 12 projects in the pipeline.

In Chile, the future of green hydrogen appears promising, driven by three key factors that position the country at the forefront of this burgeoning industry.

  1. Abundant renewable energy resources, particularly in solar and wind power.

  2. The Chilean government has demonstrated a strong commitment to fostering the green hydrogen sector. With a strategic roadmap and supportive policies in place, including incentives for research and development, Chile is actively cultivating an environment conducive to the growth of green hydrogen technologies.

  3. Chile's strategic geographical location positions it as a potential global exporter of green hydrogen, tapping into international markets and contributing to the country's economic development.

As the synergy of these factors unfolds, Chile stands poised to emerge as a leader in the production and export of green hydrogen, marking a transformative and sustainable shift in its energy landscape.


bottom of page