Nov 2, 2020
Chile, a clean energy provider for a carbon neutral planet
Summary of Chile's Green Hydrogen Strategy:
Chile aims to be Latin America's top destination for green hydrogen investment.
Target of 5 GW of electrolysis capacity operating and under development.
Production of 200,000 tonnes annually in at least two ‘hydrogen valleys’.
Chile aims to be the world's cheapest green hydrogen producer (<US$1.5/kg).
Aspire to be a global leader in green hydrogen exports and derivatives.
Target of 25 GW capacity in hydrogen production via electrolysis.
First Stage (up to 2025):
Focus on replacing imported ammonia with local production.
Replace fossil fuel-derived hydrogen in oil refineries.
Promote green hydrogen for heavy and long-distance transportation in concentrated zones.
Second Stage (up to 2030):
Begin exporting hydrogen and its derivatives.
Replace a larger share of liquid fuels in transportation and increase blending into gas grids due to competitive green hydrogen production costs.
Third Stage (post-2030):
Decarbonise shipping and aviation sectors using green hydrogen-derived fuels.
Continue to grow exports.
Promote domestic and export markets, including a funding round of up to US$50 million for green hydrogen projects.
Focus on standards, safety, and piloting.
Emphasize social and local development.
Build capacity and foster innovation.
April 2021: Corfo released bidding guidelines for its first call to develop green hydrogen projects, offering up to US$30 million for projects of 10MW or more, operational by end of 2025.
December 2021: Corfo selected six projects with a combined electrolyser capacity of 388 MW. These projects, funded at US$50 million, are expected to be operational by end 2025.
May 2022: Agreements were signed with three of the six selected companies.
June 2023: Corfo established a US$1 billion fund for green hydrogen projects, set to launch in Q3 2024. The fund comprises:
US$150 million from the World Bank in 2023, with a potential additional US$200 million loan later.
A US$400 million loan from the Inter-American Development Bank.
€100 million each from the European Investment Bank and the German state-owned bank KfW, with a €16.5 million top-up from the EU.
A US$250 million contribution from Corfo.
Read the strategy here: