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Green Hydrogen Action Plan 2023-2030

The Government recently presented the final document of the so-called "Green Hydrogen Action Plan 2023-2030," which establishes the main milestones and lines of action expected to be carried out to advance the development of the H2V industry in our country.

It is important to remember that in 2020, the Government presented the National Hydrogen Strategy, which set out the guidelines for the development of this new industry in Chile, and the main objectives for the coming years, including producing the cheapest green hydrogen in the world by 2030 and being among the top 3 exporters by 2040.

The recently announced action plan fundamentally delivers ten milestones aimed at promoting the enablement of the industry. Among these, highlights include the H2V Facility, the process of assigning state lands for project development, publication of environmental baseline data, and 18 lines of action to advance the establishment of necessary conditions for the development of green hydrogen and its derivatives.

The deployment of these measures proposes two implementation windows. The first, to be carried out between 2023 and 2026, aims to achieve the necessary investment signals, norms, and regulations, with a primary focus on ammonia, and strengthening relationships with potential buyers.

Main conditions proposed to be achieved in Window 1: Investment signals, norms, and buyers.

  • Efficient energy costs
  • Strengthening critical institutions according to industry challenges
  • Having efficient permit systems
  • Tax and financial incentives
  • Providing public environmental information and baselines
  • Enabling shared infrastructure
  • Mapping and driving necessary regulations
  • International positioning
  • Promoting local demand
  • Defining environmental, social standards, and labor conditions in the industry.
  • Promoting R&D&I
  • Voluntary agreements for the sustainable advancement of the industry

The second window, set for the years 2026 to 2030, is designed to begin to materialize productive development and decarbonization with a strong emphasis on regional and local development.

Main conditions proposed to be achieved in Window 2: Productive linkage and decarbonization.

  • Ad-hoc territorial planning instruments
  • Necessary regulation and norms implemented
  • Contribution to decarbonization: Public project information and citizen participation
  • Having a prepared human capital
  • Articulation of productive linkage and local development
  • Certification and opening to green markets
  • Performance indicators

The development of the green hydrogen industry poses a considerable challenge, both for the public and private sectors. The public sector has the responsibility to create the necessary conditions to ensure certainty, offer incentives, and streamline project authorization and review processes. On the other hand, developers and the private sector, in general, must design, build, develop, and operate the entire chain associated with the production of this energy source. This entails the incorporation of necessary technologies, ensuring financing, and addressing the inherent challenges of creating a new industry.

For further information on this matter, please contact the Energy Director at JDF, Francisco López, at flopez@jdf.cl. flopez@jdf.cl

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