Chile's regasification terminal GNL Quintero is joining a global rush into green hydrogen, an emerging fuel that the renewables-rich South American country aims to produce and export at the world's lowest cost.
GNL Quintero and its main shareholder, Spain's Enagas, as well as Spanish renewable energy developer Acciona are awaiting environmental authorization for a $30mn green hydrogen project that would start up in late 2024 or early 2025, with initial offtake oriented toward industries in the vicinity of its installations at Quintero-Puchuncavi in the Valparaiso region on the central coast.
The Quintero Bay green hydrogen project would use 10MW of electrolysis powered by solar and wind energy via the national power grid from Acciona's growing renewables portfolio in Chile. Initial production of 430 t/yr, or 50 kg/h, would rise gradually to 640 t/yr, or 73 kg/h, in response to demand.
The production would be compressed and loaded onto tanker trucks for local distribution. During peak operations, the project would load five trucks per day at a production rate of 1,764 t/d, according to the project's environmental filing submitted in August.
The project already has preliminary offtake agreements in place for 70pc of the initial capacity, an executive close to the project tells Argus, citing confidentiality agreements for not disclosing the offtakers' names.
The Quintero-Puchuncavi industrial zone encompasses Chilean state-owned Enap's 104,000 b/d Aconcagua oil refinery, US utility AES Andes' Ventanas coal-fired power complex and a copper smelter belonging to state-owned Codelco, among other installations. The congested area has long been a target of environmental controversy because of toxic emissions.
Enap, which owns 20pc of GNL Quintero, is expected to test green hydrogen at its 116,000 b/d Bio Bio refinery in southern Chile, where a consortum led by domestic firm AME is building a green hydrogen pilot project to produce methanol and carbon-neutral fuels.
Green hydrogen is a pillar of Chile's 2050 carbon neutrality goal. The government unveiled a national hydrogen strategy last year, with a preliminary focus on the domestic market growing into the EU and Asian export markets over the next decade. Development agency Corfo is currently conducting a tender to fund green hydrogen projects.
Among other companies pursuing green hydrogen in Chile are France's Engie and mining explosives manufacturer Enaex.
