Snapshot.CHILE

A Hidden Hydrogen Champion is Awakening

A notable player in the emerging global hydrogen trade is Chile, which is focusing on public-private partnerships as a key mechanism to accelerate the country's energy transition. Chile has signed several international agreements with foreign countries to strengthen its hydrogen industry. In 2021, Chile signed a joint agreement with Germany with the aim of enhancing co-operation in green hydrogen project development. The two countries will exchange experience and knowledge through the creation of a working group, and will also establish a regulatory framework. A further aim is to develop low-carbon certification systems.

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A Hidden Hydrogen Champion Is Awakening

A notable player in the emerging global hydrogen trade is Chile, which is focusing on public-private partnerships as a key mechanism to accelerate the country's energy transition. Chile has signed several international agreements with foreign countries to strengthen its hydrogen industry. In 2021, Chile signed a joint agreement with Germany with the aim of enhancing co-operation in green hydrogen project development. The two countries will exchange experience and knowledge through the creation of a working group, and will also establish a regulatory framework. A further aim is to develop low-carbon certification systems.

A joint agreement between Chile and the Netherlands aims to establish green hydrogen import-export corridors. It also seeks to align the investment agenda and to improve the collaboration of private companies. In addition, Chile signed a memorandum of understanding with Belgium to enhance green hydrogen production in co-operation with the ports of Antwerp and Zeebrugge, which aim to become the main hubs for hydrogen imports to Europe. In Asia, Chile signed a memorandum of understanding with the Republic of Korea to expand co-operation in the low-carbon hydrogen sector and to exchange technologies for producing, storing, transporting and using clean hydrogen.

Source: See endnote 47 for this section.

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  1. International Renewable Energy Agency (IRENA), “Global Hydrogen Trade to Meet 1.5°Climate Goal”, 2022, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Jul/IRENA_Global_hydrogen_trade_part_1_2022_.pdf. 1
  2. International Energy Agency (IEA), “Global Hydrogen Review 2022”, 2022, https://www.iea.org/reports/global-hydrogen-review-2022.2
  3. A. de Pee, “The clean hydrogen opportunity for hydrocarbon-rich countries”, McKinsey & Company, November 23, 2023, https://www.mckinsey.com/industries/oil-and-gas/our-insights/the-clean-hydrogen-opportunity-for-hydrocarbon-rich-countries; A. Holland, “Can Green Hydrogen Be Cost Competitive?” IDTechEx, March 17, 2023, https://www.idtechex.com/en/research-article/can-green-hydrogen-be-cost-competitive/28876; P. Day, “Hydrogen as a backup for renewables remains a distant proposition”, Reuters, February 1, 2023, https://www.reuters.com/business/energy/hydrogen-backup-renewables-remains-distant-proposition-2023-02-01. 3
  4. R. Davey, “Green Hydrogen's Role in Electrifying the Heavy Industry”, AZO CLEANTECH, April 11, 2023, https://www.azocleantech.com/article.aspx?ArticleID=1676; T. Casey, “Tiny Mass. Startup Cooks Up Big, Green Hydrogen Plan”, CleanTechnica, June 27, 2022, https://cleantechnica.com/2022/06/27/tiny-mass-startup-cooks-up-big-green-hydrogen-plan; J. Walsh and M. DiFelice, “How Much of This Hype for Hydrogen ‘Energy' Is Just Smoke and Mirrors?” Food & Water Watch, December 13, 2022, https://www.foodandwaterwatch.org/2022/12/13/hydrogen-energy-hype.4
  5. IEA, op. cit. note 2.5
  6. Ibid.6
  7. IEA, “Electrolysers”, 2022, https://www.iea.org/reports/electrolysers.7
  8. IEA, op. cit. note 2. 8
  9. A. Habibic, “GlobalData: Hydrogen market to witness growth surge in 2023”, Offshore Energy, February 13, 2023, https://www.offshore-energy.biz/globaldata-hydrogen-market-to-witness-growth-surge-in-2023.9
  10. Ibid.10
  11. Government of Australia, Department of Climate Change, Energy, the Environment and Water, “State of Hydrogen 2022”, 2022, https://www.dcceew.gov.au/energy/publications/state-of-hydrogen-2022.11
  12. Mckinsey & Company, “Hydrogen Insights 2022: An updated perspective on hydrogen market development and actions required to unlock hydrogen at scale”, September 2022, https://hydrogencouncil.com/wp-content/uploads/2022/09/Hydrogen-Insights-2022-2.pdf.12
  13. L. Wan, “Energy from green hydrogen will be expensive, even in 2050”, CRU, February 24, 2023, https://sustainability.crugroup.com/article/energy-from-green-hydrogen-will-be-expensive-even-in-2050; IEA, “Global average levelised cost of hydrogen production by energy source and technology, 2019 and 2050”, October 26, 2022, https://www.iea.org/data-and-statistics/charts/global-average-levelised-cost-of-hydrogen-production-by-energy-source-and-technology-2019-and-2050. 13
  14. Figure 21 from REN21 Policy Database. See GSR 2023 Data Pack, available at www.ren21.net/gsr2023-data-pack/supply.14
  15. METI, “Japan's Roadmap to ‘Beyond-Zero' Carbon”, 2017, https://www.meti.go.jp/english/policy/energy_environment/global_warming/roadmap/innovation/thep.html; D. Akimoto, “Japan Looks to Promote a Hydrogen Society”, The Diplomat, January 4, 2023, https://thediplomat.com/2023/01/japan-looks-to-promote-a-hydrogen-society.15
  16. Renewable Energy Institute, “Re-examining Japan's Hydrogen Strategy”, September 22, 2022, https://www.renewable-ei.org/en/activities/reports/20220922.php.16
  17. N. Coca, “A half-decade after its first plan, Japan's hydrogen goals remain distant”, Energy Monitor, March 29, 2023, https://www.energymonitor.ai/tech/hydrogen/a-half-decade-after-its-first-plan-japans-hydrogen-goals-remain-distant; D. Orf, “Japan Tried to Build a Hydrogen Society. It Backfired Spectacularly”, Popular Mechanics, January 26, 2023, https://www.popularmechanics.com/science/green-tech/a42665011/japan-hydrogen-energy-failure; A. Cohen, “The Biden Administration Should Learn Japan's Painful Lessons on Hydrogen”, Forbes, February 13, 2023, https://www.forbes.com/sites/arielcohen/2023/02/13/the-biden-administration-should-learn-japans-painful-lessons-on-hydrogen. 17
  18. J. Nakano, “China's Hydrogen Industrial Strategy”, Center for Strategic and International Studies, February 3, 2022, https://www.csis.org/analysis/chinas-hydrogen-industrial-strategy.18
  19. National Development and Reform Commission, “China Hydrogen National Strategy”, March 23, 2022, https://www.ndrc.gov.cn/xxgk/zcfb/ghwb/202203/t20220323_1320038.html; Y. Yu, “China's National Hydrogen Development Plan”, Energy Iceberg, April 6, 2022, https://energyiceberg.com/national-hydrogen-development-plan.19
  20. A. Lee, “Modi pledges massive green hydrogen ‘quantum leap' to Indian energy independence”, Recharge, August 16, 2021, https://www.rechargenews.com/energy-transition/modi-pledges-massive-green-hydrogen-quantum-leap-to-indian-energy-independence/2-1-1052701. 20
  21. Ministry of New and Renewable Energy of India, “Budget 2021-22 augments capital of SECI and IREDA to promote development of RE sector”, February 9, 2021, https://pib.gov.in/PressReleasePage.aspx?PRID=1696498.21
  22. European Commission, “A hydrogen strategy for a climate-neutral Europe”, July 8, 2020, https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52020DC0301&from=EN.22
  23. Ibid.23
  24. DW, “Germany to join Mediterranean hydrogen pipeline project”, January 22, 2023, https://www.dw.com/en/germany-to-join-mediterranean-hydrogen-pipeline-project/a-64483071; I. Shumkov, “EU to deepen clean hydrogen cooperation with Japan”, Renewables Now, December 2, 2022, https://renewablesnow.com/news/eu-to-deepen-clean-hydrogen-cooperation-with-japan-807033.24
  25. I. Shine, “Which countries are leading the way with hydrogen?” World Economic Forum, May 16, 2023, https://www.weforum.org/agenda/2023/03/hydrogen-innovation-patents-technology.25
  26. BMWK, “National Hydrogen Strategy”, June 2020, https://www.bmwk.de/Redaktion/EN/Publikationen/Energie/the-national-hydrogen-strategy.pdf.26
  27. Bundesregierung, “Relief for electricity consumers”, April 27, 2022, https://www.bundesregierung.de/breg-en/news/renewable-energy-sources-act-levy-abolished-2011854; BMBF, “National Hydrogen Strategy: Green hydrogen as energy source of the future”, May 6, 2022, https://www.bmbf.de/bmbf/en/news/national-hydrogen-strategy.html.27
  28. The Maritime Executive, “Germany Signs Landmark Deal to Buy Denmark's Green Hydrogen”, March 26, 2023, https://maritime-executive.com/article/germany-signs-landmark-deal-to-buy-denmark-s-green-hydrogen. 28
  29. Government of France, “National strategy for the development of decarbonised and renewable hydrogen in France”, 2020, https://www.bdi.fr/wp-content/uploads/2020/03/PressKitProvisionalDraft-National-strategy-for-the-development-of-decarbonised-and-renewable-hydrogen-in-France.pdf. 29
  30. K. Abnett, “France leads push for EU to boost nuclear-produced hydrogen”, Reuters, February 3, 2023, https://www.reuters.com/business/energy/france-leads-push-eu-boost-nuclear-produced-hydrogen-2023-02-03; A. Nussbaum ‘France's Hydrogen Pipeline With Spain Is at Risk Over Green Rules”, Bloomberg, February 14, 2023, https://www.bloomberg.com/news/articles/2023-02-14/france-s-hydrogen-pipeline-with-spain-at-risk-over-green-rules. 30
  31. Consejo de Ministros, “El Gobierno aprueba la ‘Hoja de Ruta del Hidrógeno: una apuesta por el hidrógeno renovable'”, October 6, 2020, https://www.miteco.gob.es/es/prensa/ultimas-noticias/el-gobierno-aprueba-la-hoja-de-ruta-del-hidr%C3%B3geno-una-apuesta-por-el-hidr%C3%B3geno-renovable/tcm:30-513814.31
  32. Ibid.32
  33. BP, “BP launches plans for low-carbon green hydrogen cluster in Spain's Valencia region”, February 28, 2023, https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-launches-plans-for-low-carbon-green-hydrogen-cluster-in-spains-valencia-region.html; M. Wetselaar, “7 reasons why Spain and Portugal are about to become a green hydrogen powerhouse”, World Economic Forum, January 11, 2023, https://www.weforum.org/agenda/2023/01/spain-portugal-green-hydrogen-powerhouse-davos23.33
  34. US Department of Energy, “Clean Hydrogen Strategy Roadmap”, September 2022, https://www.hydrogen.energy.gov/pdfs/clean-hydrogen-strategy-roadmap.pdf; L. Collins, “US unveils draft national clean hydrogen strategy and roadmap – with three key priorities”, Recharge, September 23, 2022, https://www.rechargenews.com/energy-transition/analysis-us-unveils-draft-national-clean-hydrogen-strategy-and-roadmap-with-three-key-priorities/2-1-1308355; Warner, “U.S. Department of Energy Announces History $7 Billion Funding Opportunity to Jump-Start America's Clean Hydrogen Economy”, September 26, 2022, https://www.warner.senate.gov/public/index.cfm/2022/9/u-s-department-of-energy-announces-history-7-billion-funding-opportunity-to-jump-start-america-s-clean-hydrogen-economy. 34
  35. Katy Jane, “Hydrogen production to increase in 2023 as global interest continues.”, Dolphin N2, January 4, 2023, https://dolphin-n2.com/hydrogen-production-to-increase-in-2023-as-global-interest-continues.35
  36. J. Wood, “Which countries could become the world's hydrogen superpowers?” World Economic Forum, February 14, 2022, https://www.weforum.org/agenda/2022/02/clean-hydrogen-energy-low-carbon-superpowers.36
  37. Australian Government, op. cit. note 11.37
  38. Ibid.38
  39. Brazilian Government, “Brazil publishes National Hydrogen Program”, August 29, 2022, https://www.gov.br/en/government-of-brazil/latest-news/2022/brazil-publishes-national-hydrogen-program. 39
  40. Ibid.40
  41. P. Sánchez Molina, “Brazil sets up secretariat to develop green hydrogen”, pv magazine, August 9, 2022, https://www.pv-magazine.com/2022/08/09/brazil-sets-up-secretariat-to-develop-green-hydrogen; A. Čučuk, “Unigel and ThyssenKrupp to increase capacity of Brazil hydrogen plant”, OffShore Energy, March 13, 2023, https://www.offshore-energy.biz/unigel-and-thyssenkrupp-to-increase-capacity-of-brazil-hydrogen-plant. 41
  42. Ministry of Energy, Government of Chile, “National Green Hydrogen Strategy”, November 2020, https://energia.gob.cl/sites/default/files/national_green_hydrogen_strategy_-_chile.pdf.42
  43. HIF Global, https://www.hifglobal.com, accessed May 2023. 43
  44. Unigel, “Unigel installs the first industrial-scale green hydrogen production site in Brazil using thyssenkrupp nucera technology”, PR News Wire, July 26, 2022, https://www.prnewswire.com/news-releases/unigel-installs-the-first-industrial-scale-green-hydrogen-production-site-in-brazil-using-thyssenkrupp-nucera-technology-301593261.html. 44
  45. H. Regensburg, “Haru Oni e-fuels demo plant in Chile officially opens”, Green Car Congress, December 21, 2022, https://www.greencarcongress.com/2022/12/haru-oni-e-fuels-demo-plant-in-chile-officially-opens.html. 45
  46. F. La Camera, “The Geopolitics of the Energy Transformation: The Hydrogen Factor”, IRENA, January 15, 2021, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Jan/12A_Geopolitics_MS.pdf.46
  47. S. Matalucci, “Hydrogen is changing power dynamics in energy sector”, DW, December 28, 2022, https://www.dw.com/en/is-hydrogen-changing-the-power-dynamics-in-the-energy-world/a-64224508; G. Cantini, “Hydrogen in the MENA region: Priorities and steps forward”, EnergySource, February 14, 2023, https://www.atlanticcouncil.org/blogs/energysource/hydrogen-in-the-mena-region-priorities-and-steps-forward. Snapshot: Chile based on the following sources: V. Eckert, “Germany and Chile sign accord to boost hydrogen cooperation”, Reuters, June 29, 2021, https://www.reuters.com/business/energy/germany-chile-sign-accord-boost-hydrogen-cooperation-2021-06-29; Government of the Netherlands, “Joint statement of Chile and The Netherlands on collaboration in the field of green hydrogen import and export”, July 1, 2021, https://www.government.nl/documents/diplomatic-statements/2021/07/01/joint-statement-of-chile-and-the-netherlands-on-collaboration-in-the-field-of-green-hydrogen-import-and-export; S. Pekic, “Belgian ports and Chile to collaborate on green hydrogen”, Offshore Energy, November 5, 2021, https://www.offshore-energy.biz/belgian-ports-and-chile-to-collaborate-on-green-hydrogen.47