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Chile losing international green hydrogen head-start, business state

Industry experts are concerned Chile is falling behind the international green hydrogen race regardless of having a headstart due to its strong renewable resource matrix and geographical advantage to export to Asian markets.

In a panel about energy shift in Santiago, companies betting billions on green hydrogen in the Andean country stated lengthy permitting and an absence of facilities, mainly ports and energy transmission, are holding the industry back while other countries are charging ahead.

We had a 3, 4 year running start compared to the rest of the world in implementing these jobs, however today that's. down to months, said Mario Marchese, job director for HNH. Energy an $11 billion green hydrogen job in Chile's. Patagonia.

We remain in a race to see who gets initially to markets initially,. Marchese said. And every day that window is closing and we're. losing that war.

HNH Energy, backed by AustriaEnergy, Okowind and Copenhagen. Facilities Partners, aims to produce 1.3 megatons of ammonia. and 270,000 lots of hydrogen a year with a 1.4 Gigawatt wind. farm. It is among the biggest green hydrogen projects in the. world and the biggest investment to go through Chile's. ecological allowing process.

We've invested 4 years preparing the ecological authorization,. we have actually invested dozens of countless dollars to get to this phase. and we still have a long road to go, Marchese said, including that. the permitting has actually been the most difficult part of the job. and they want to sign building contracts in the very first half. of 2027.

Marchese kept in mind that Australia is racing to reach Asian. markets first and Brazil is also emerging as an international. competitor.

Katherine Orozco, task development supervisor for EDF Chile,. a subsidiary of France's EDF that has a $2 billion financial investment. strategy, said Chile's abundance of solar energy in its northern. desert areas and wind energy in the Patagonian south, along. with seaside distance, offered it a huge benefit over other. countries in Latin America.

When it pertains to hydrogen, 60 or 70 percent of the cost is. from electrical costs from eco-friendly, Orozco said. That's what. should provide us a benefit against the rest of the world, so we. shouldn't lose that.

Orozco stated that one of the greatest challenges she sees is a. absence of electrical transmission lines and ports to export green. hydrogen. Brazil, she kept in mind, has actually currently begun developing. ports, providing it an advantage over Chile.

Both Orozco and Marchese noted that the federal government is aiding. in public-private investment and two bills aimed at speeding up. licenses, however both have been postponed in congress.

(source: Reuters)