Chilean LNG firm GNL Quintero and Acciona Energía have received environmental approval for a 10MW green hydrogen project near Valparaíso.
The companies said the Environmental Assessment Commission (COEVA) of Valparaíso “unanimously” approved the project which plans to supply industries in Bahía Quintero-Puchuncaví.
Having secured a $5.7m subsidy from the Chilean Corporation for the Promotion of Production (CORFO), the plant will be built on GNL Quintero’s existing premises in Quintero. It is expected to produce 1,600 tonnes of hydrogen per year.
Read more:Three projects in Chile could double world electrolyser capacity
In addition to the environmental permit, the companies have been advancing project engineering, electrolyser selection, and offtake discussions with prospective end-users.
“If the investment conditions are met, it is contemplated that the construction and technical tests will be developed during the next year,” a statement said.
GNL Quintero plans to source water from an existing network at the Quintero LNG Terminal facilities and will use a “certified renewable energy supply contract” through connection to the national grid.
With plans of hosting 4-5GW of green hydrogen production in 2025, and up to 25GW by 2030, Chile hopes to use its abundant renewables to produce some of the cheapest green hydrogen globally.
Read more:Chile wants to produce the cheapest green hydrogen globally
Policy Pillar: How can South America seize its green hydrogen opportunity?
South America’s green hydrogen potential has been recognised for some time. Currently among the leading regions in renewable energy use, the continent has received growing interest from hydrogen developers thanks to its potential to produce large volumes of low-cost hydrogen for export.
Despite having lower carbon dioxide (CO2) emissions per capita by comparison to Western countries, low-carbon hydrogen can also play a significant role in Latin America’s own energy transition.
The region’s industrial and oil refining sectors required more than four million tonnes of hydrogen in 2019 – 5% of global demand – primarily for ammonia, methanol, steel and refined oil products1. “Low-carbon hydrogen could be one of the drivers of the next phase of Latin America’s clean energy transitions, by replacing fossil fuels in end uses that are not suitable for direct electrification,” the International Energy Agency (IEA) said.
More recently, the region has been looked at as a potential source of low-carbon hydrogen for high-demand regions that cannot produce at the volume or costs required…
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