Chile advancing green hydrogen regulations

Market: Electricity, Emissions, Fertilizers, Hydrogen, Metals, Petrochemicals
24/03/21

Chile is finalizing the initial part of new regulations for its emerging green hydrogen industry.

A document that orients developers on how to present proposed projects to the electricity and fuels regulator (SEC) will be completed soon.

"The authorities are reviewing a preliminary version and we hope to have a final version in coming weeks," the energy ministry told Argus.

The process of drafting the regulations started at the end of September, shortly before the government announced a national green hydrogen strategy. The regulations will cover installations for hydrogen production, treatment, storage, ground transport and consumption.

Green hydrogen — produced by water electrolysis that is powered by solar, wind or other renewable sources — is a pillar of Chile's pledge to reach carbon neutrality in 2050.

The parties hammering out the regulations include a technical committee comprised of representatives of the energy ministry, the SEC, the national energy commission (CNE), the mining ministry and the national geological and mining service (Sernageomin).

Also participating is a technical working group that includes the technical committee and other public-sector representatives tasked with analyzing, observing and validating the proposals. A broader public-private working group, which held its first meeting in December, incorporates the technical working group and more than 25 representatives from industry, academia and the private sector.

Issues under discussion include access to government-owned land. Developers are seeking to bypass lengthy auctions conducted by the national assets ministry in favor of direct awards to mitigate uncertainty and lower costs.

Projects taking shape

The most advanced green hydrogen project in Chile is led by Andes Mining and Energy (AME), which plans to start construction in April on a methanol-to-gasoline pilot project in the deep south. The Highly Innovative Fuels (HIF) project will use green hydrogen to produce carbon-neutral methanol, gasoline and other products such as LPG, applying ExxonMobil's methanol-to-gasoline technology.

Another leading green hydrogen developer is France's Engie, which is working with Chile's copper mining industry to decarbonize heavy transport and introduce green ammonia for manufacturing mining explosives.

On the horizon for the fledgling industry is the launch of a tender for $50mn in subsidies from development agency Corfo for green hydrogen projects. The tender launch has not yet been scheduled, Corfo said.

By Patricia Garip

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