This roadmap departs from the 2020 strategy’s ambitious 25 GW electrolysis capacity target and the short-term $1.5/kg cost metric for green hydrogen production. Current expectations set production costs at under $4/kg by 2030 and below $2/kg by 2045, reflecting slower global cost declines, limited electrolysis manufacturing scale outside Asia, and increased market scrutiny. The inclusion of green hydrogen derivatives, notably ammonia, methanol, and e-fuels, addresses logistical and commercial challenges by promoting more transportable energy carriers.
Chile’s strategy highlights three core pillars: strengthening domestic demand and decarbonizing mining, industry, transport, and power generation; reinforcing export sector development and global positioning; and promoting local value chains through supplier growth, infrastructure deployment, and human capital formation. Strategic regional clusters in Magallanes and Antofagasta will continue to serve as critical development hubs.
The updated plan incorporates milestones such as water desalination or recycling for electrolysis, expansion of port and logistics infrastructure, and implementation of a national hydrogen certification system. Projected investment through 2035 could reach $32 billion, generating between 36,000 and 85,000 direct jobs, primarily in renewable resource-rich and logistically favorable zones.
Chile’s broad institutional collaboration, involving 11 ministries and private-public stakeholders, aims to ensure policy continuity across administrations and enhance international cooperation. By fostering demand within the mining and industrial sectors, the strategy seeks to create a domestic scale foundation to underpin future export growth underpinned by robust regulatory, financial, and infrastructural frameworks.
This article was curated and published as part of our South American energy market coverage.
