Chile's renewable energy resources could potentially produce 70 times its current electricity capacity and generate up to 160 MMtpy of clean hydrogen by 2050, as outlined in its National Green Hydrogen Strategy adopted by President Gabriel Boric’s government. The plan aims to increase electrolyzer capacity to 5 GW by 2025 and 25 GW by 2030, with clean hydrogen priced at $0.8-$1.1 per kilo by 2030. Significant financial backing includes loans from the European Investment Bank, World Bank, and Inter-American Development Bank.

Latin America is positioned to fulfill 25%-33% of global clean hydrogen demand by 2030, with countries like Chile focusing on decarbonizing their mining sectors and exporting hydrogen. However, the region faces challenges such as low investment, competition from U.S. subsidies, and a lack of regional coordination. Current hydrogen demand in Latin America primarily stems from oil refining and chemicals manufacturing, with most production relying on imported natural gas. For Latin America to unlock its hydrogen potential, immediate action is needed to balance domestic and export demands.

Source: Reuters

For the full story, visit: https://www.reuters.com/business/energy/chile-leads-latin-american-push-clean-hydrogen-2024-10-22/