Chile’s Local Advantages for "Green" Hydrogen Production

Hydrogen is a colourless, odourless, tasteless, and flammable gas.  It is not found in its pure state in nature; therefore, it cannot be considered as a primary energy source.
Sustainable, "green" hydrogen is produced by electrolysis with electricity from renewable energies. It is an emission-free gas that can be stored and used for transport and energy-intensive industry processes. From "green" hydrogen, derivatives such as green ammonia, green methanol, green methane or other sustainable synthetic fuels can be produced and used in various sectors. 

Chile has

  • a unique potential for generating electricity with renewable energies (especially solar and wind) with high operating and full load hours. Prices for electricity from photovoltaic systems are below 20 USD/MWh and for wind energy below 30 USD/MWh.
  • sufficient land areas available for renewable energy plants and little conflict of land areas with other types of use.
  • signed the Paris Climate Agreement, pursues an ambitious energy turnaround policy and has decided to phase out coal-fired power generation (three coal-fired power plants have already been shut down).
  • large international groups active in the mining and energy sector, which are interested in decarbonizing their production with "green" hydrogen.
  • good trade relations with Germany/Europe and is open for even more technology transfer from Germany.
  • a regional impact on the neighbouring countries
  • been an export country for a long time and has a good export infrastructure.


In Chile

  • the expansion of renewable generation capacities runs parallel to the expansion of the electricity supply for the population and industry.
  • an expansion of hydrogen production that will also be ready to export has no negative impact on the country's security of supply.
  • creating a hydrogen infrastructure that is an official component of the Chilean decarbonization strategy with the target of CO2 neutrality in 2050. The "green" Hydrogen economy is supposed to contribute 21 percent to GHG mitigation.
  • water supply for planned electrolysis plants is generally not a problem and can be provided in the arid north of Chile (Atacama Desert) in connection with seawater desalination plants.


The Chilean Ministry of Energy and the governmental production development corporation CORFO have recognised "green" hydrogen as a contribution to Chile's decarbonisation and, with the support of the IKI decarbonisation project, are currently working on a "road map" for the further support of private sector initiatives.

In a High-Level (Virtual) Steering Committee on January 29, the Chilean Minister Jobet and State Secretary Feicht agreed to establish two working groups, “Carbon phase-out, renewables phase-in” and “Carbon Neutral Innovations”. In the latter the BMWi and the Chilean Ministry of Energy work together in optimising their national hydrogen strategies and to foster technological exchange.

Further Reads

Green Hydrogen Regulation Challenges

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Exclusive Dialogue: "Hidden Champion" of Green Hydrogen

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German Hydrogen Strategy

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German National Hydrogen Strategy

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CH2ILE – The Hidden Hydrogen Champion. A Redemption Story for Chile's Economy.

Article in Magazine "HZWEI" Read (English)