04/30/2024 | Press release | Distributed by Public on 04/30/2024 16:17
On Thursday, April 25, 2024, the Government of Chile unveiled its Green Hydrogen Action Plan 2023-2030, a comprehensive strategy to promote the development of the green hydrogen industry and its derivatives in the southern country. This action plan builds on the initial efforts made by the current and prior administrations to position Chile as a major producer of low-cost green hydrogen (Green H2) in the international market. The Green Hydrogen Action Plan aims to industrialize the national economy by replacing polluting industries with sustainable ones and achieve the country's goal of carbon neutrality by 2050.
The plan outlines 81 action items across 18 different categories, including governance, information/education, economic and financial incentives, environmental management, sustainability, regulation, permitting, additional infrastructure, energy cost and transmission, research and development and openness to the international markets. These measures will be implemented in two phases. During the initial phase (2023 to 2026), the plan will focus on establishing the necessary conditions for the growth of the Green H2 industry, including defining environmental, social, and labor standards, streamlining permitting processes, promoting research, advancing incentives, and relationships with potential buyers. In the second phase (2026 to 2030), building upon these foundations, the plan will focus on the development of the green hydrogen industry and decarbonization with an emphasis on regional and local development.
Some of the most notable action items included in the plan to advance private investment are:
Chile has launched a comprehensive and ambitious plan to position the country as a world leader in the production of green hydrogen. The Government recognizes the importance of strong public-private partnerships in mitigating risks and ensuring the success of early projects. Additionally, the plan aims to support the first wave of industrial green hydrogen projects, which will function as catalysts for market growth and help to reduce uncertainties.
The continuing development and implementation of the Green Hydrogen Action Plan hinges on Chile's ability to attract investment, foster technological innovation and establish a favorable regulatory environment. Overall, this plan represents a bold and necessary step forward in Chile's energy transition goals, which is not exempt from significant challenges, such as the timely approval of key legislation to provide tax incentives and streamline the regulatory process to develop infrastructure and green hydrogen projects.
As more information becomes available regarding the different initiatives under the Green Hydrogen Action Plan, new opportunities and/or challenges may be identified by the private sector as key factors in their appetite to invest in the development of Chile's unquestionable potential in the nascent green hydrogen market. We will continue to monitor this action plan as it continues to unfold.
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