Chile’s Green Hydrogen Revolution: Leading Towards Lower Costs

Chile’s green hydrogen production the most economical in the whole world; aims to have 5 GW capacity for electrolysis.

Post on Green hydrogen generation from the mining sector of Chile from Bnamericas.

In 2020, Chile unveiled its national green hydrogen strategy, aiming to become a leading destination for hydrogen investment in Latin America
The goal is to have at least 5 GW of electrolysis capacity operating, producing at least 200k/tons of hydrogen per year, and reaching a price of US$1.50 per kilogram

Chile currently stands out as a frontrunner in green hydrogen pricing. Here’s how it compares to other countries:

Cost Advantage:
- McKinsey research indicates that Chile can produce green hydrogen at $1.05 per kilogram by 2030.
- This cost is lower than the Middle East and Australia, which are also key players in the emerging green hydrogen industry.
Global Context:
- Chile has the lowest production costs for green hydrogen worldwide.
- As of 2020, the country’s renewables infrastructure allowed for green hydrogen generation ranging between 3.5 and 3.75 euros (3.76 – 4.03 USD) per kilogram.
Relative Reduction:
- By 2030, the levelized costs of producing hydrogen in the EU and the United States are projected to reach 2.6 and 2.1 USD/kg H₂, respectively.
- In comparison, northern Chile’s costs would be around 1.4 USD/kg H₂ during the same period according to other sources, without considering transportation and distribution costs.

Interestingly, we have some other posts related to this content:

Chile’s Green Hydrogen Revolution: Mining, Emissions Slash: Chile is shifting toward green hydrogen production to reduce carbon emissions in mining operations, aiming to account for 30% of domestic demand by 2050. Green Hydrogen in Chile’s Steel Industry – Vale and H2 Green Steel Collaborate – Collaboration between Vale and H2 Green Steel highlights the growing importance of green hydrogen in the steelmaking process in Chile.