Hydrogen is one of the central topics that will be discussed at the RENMAD Chile 2023 conference, being held in Santiago on August 2-3. With some 50 projects announced, Chile is well-positioned to ride the global green hydrogen wave thanks to its abundant world-class renewable energy resources – but other pieces of the jigsaw puzzle will need slotting into place, too. Ahead of RENMAD, BNamericas, in collaboration with organizers ATA Insights, conducted an email interview with Asunción Borrás, head of hydrogen business development at power company Engie Chile. Borrás is among the panelists at the event, which will also put energy storage under the spotlight. In Chile, Engie has proposed supplying 3,200t/y green hydrogen to explosives manufacturer Enaex for green ammonia production. With planned electrolyzer capacity of 26MW, the Antofagasta region project, HyEx, was granted a US$9.5mn subsidy by state development agency Corfo for electrolyzer acquisition support andisdue to enter service by end-2025. Second phase work on HyEx, planned for sundrenched Antofagasta region, would involve installing 3GW of solar panels, 2GW of electrolyzer capacity, a hydrogen pipeline and associated industrial installations. ALSO READ: Green hydrogen demand needs incentivizing in Chile, project trailblazer says ALSO READ: Chile green hydrogen momentum building BNamericas: The EU announced a 225mneuro (US$249mn) investment in green hydrogen in Chile. The IDB has also approved a US$400mn program for hydrogen in Chile. Why do you think green hydrogen is attractive to these institutions? Borrás: At Engie we have a commitment both nationally and internationally to the development of the green hydrogen industry, which is essential for the decarbonization of the energy matrix. In this sense, Chile has the foundations to be an important player in the world of renewable hydrogen: it has the best photovoltaic resource in the world, a wind resource,thee is support and will from the State for the development of the industry, there is land, infrastructure, coast and ports to export hydrogen or its derivatives, there is an industry with high potential for local consumption – mining. All of this is reflected in the pipeline of projects under development by relevant players in the energy sector. Europe looks at Chile as a candidate for its imports of hydrogen/derivatives, given the competitiveness that production in Chile must achieve and the needs for diversification of the supply matrix that Europe should have to avoid situations that have been precedents with other energy sources. If the projects follow their natural course, financing needs are just around the corner, which is why financial institutions and multilateral banks are already positioning themselves for the future of the industry, knowing that they must first offer more creative and facilitating mechanisms that help the first projects materialize. Funds or facilities suh asthose announced undoubtedly help this cause. BNamericas: What are the main obstacles to the development of green hydrogen in Chile? Borrás: There are two issues to be discussed: one, the need for local demand as a catalyst for exports; and two, the development times in Chile. First, although the local market potential in Chile is not as great as the export potential, local demand can play a fundamental role as a catalyst for the materialization of export projects. Before completing gigawatt-scale projects, it is necessary to have more medium-scale projects with which to hone the learning curve, and local demand is what can make this type of first project possible. Second, development times must be taken into account, particularly those derived from environmental and sectoral permits. The development of gigawatt-scale projects involves at least three or four years, mainly derived from obtaining the environmental license and sectoral permits, to which is added the ret of he activities that must be carried out in parallel. For example, it often happens that the engineering with which the project entered the environmental assessment system undergoes modifications as a result of the technological advances obtained during permit processing. BNamericas: What needs to happen to reach the goal of producing green hydrogen at US$1.50/kg, the 2030 target in Chile’s hydrogen strategy? Borrás: As I mentioned before, Chile has the fundamentals to be an important player in the hydrogen and its derivatives market, and the production of these, given the fundamentals, will be in the best ranges of competitiveness worldwide, similar to the Middle East. Chile must aspire to be in a competitive range that allows the development of the industry and allows it to have a place in the international market, without leaving the figure of US$1.50/kg written in stone as the sole and exclusive goal. The development of the industry will mark the range to reach to ensure Chile’ partiipation in the market. RENMAD Chile 2023 is being held August 2-3 in Santiago. Click here for more details.
