Chile spearheads green hydrogen strategy

  • Spanish Market: Emissions, Fertilizers, Hydrogen, Oil products
  • 14/10/20

Chile has launched a long-term green hydrogen strategy as a way to exploit surplus renewable energy capacity, diversify its export-oriented economy and meet its emissions goals.

By 2050, the country could produce 25mn t/yr of green hydrogen, and earn $30bn/yr from liquefied exports, capturing 50pc of the Japanese and South Korean markets and 20pc of the Chinese market, according to a McKinsey consultancy study cited by energy minister Juan Carlos Jobet in a presentation today.

Chile's projected 2030 production would represent 5pc of global green hydrogen market.

Although Chile's exports would have higher logistical costs because of market distance, they would be among the world's least expensive because of lower production costs, Jobet said.

He cited more than 20 pilot projects already on the drawing board in Chile, including a green methanol and gasoline initiative based on a 30MW wind farm in far-south Magallanes, with Chile's AME, Italy's Enel Green Power, Germany's Siemens and Porche. The project would be built at state-owned oil company Enap's Cabo Negro installations.

France's Engie and Chilean explosives manufacturer Enaex are working on a green ammonia pilot project in the northern Antofagasta region, based on 1GW of solar, to launch in 2024.

Chile generated 44pc of its electricity from renewable sources in 2019, a level projected to reach 70pc in 2030.

"We have 70 times more renewable energy generating capacity than we currently consume, so we have to find ways to take advantage of that potential, not only to improve our quality of life, but also to export this to the world, to generate income and contribute to the goal of carbon neutrality," Jobet said.

Chile currently boasts $28.6bn in renewable energy projects, with 49pc under construction and 51pc awaiting environmental permits. Solar accounts for 49pc of the total, followed by wind with 18pc.

Jobet noted the potential for hydrogen marine fuel, which would help to reduce overall emissions associated with the country's copper exports. Diesel used at Chile's copper mines would be replaced with hydrogen as well.

Jobet was careful to distinguish the hydrogen potential from lithium, of which Chile is a leading producer. Lithium batteries are heavy but they provide an energy burst, while hydrogen-based energy is more akin to a marathon, he said.


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22/04/24

Brazil 1Q tallow exports triple on long-term contracts

Brazil 1Q tallow exports triple on long-term contracts

Sao Paulo, 22 April (Argus) — Brazilian beef tallow exports totaled 73,930 metric tonnes (t) in the first quarter, a three-fold increase from the same three-month period in 2023 on rising demand. Almost 93pc of outflows between January and March were shipped to the US, according to data from Brazil's trade ministry. Long-term contracts explain the rising flow of exports, even though spot market arbitrage was closed throughout the first quarter (see chart) . The price of tallow in the Paranagua and Santos ports was $960/t fob on 19 April, keeping the arbitrage closed to US Gulf coast buyers, where the reference product was at $901/t on a delivered inland basis. Brazilian tallow is also negotiated at a premium against soybean oil, which closed at $882/t fob Paranagua on 19 April. This scenario has been observed since the 1 December 2023 start of Argus ' tallow export price assessment. Historically, vegetable oil in Brazil was traded at a discount to tallow, but strong demand has boosted the price of animal fat. Some biodiesel plants have been purchasing used cooking oil (UCO) or pork fat as an alternative. In 2023, there were doubts about whether the outflow of tallow from Brazil would be constant. Market participants now believe that the 2024 start of operations at new renewable diesel refineries in the US should sustain exports. Local suppliers that have already signed supply guarantee contracts — some up to three years — with American buyers are also considering export opportunities with Asia, including a new renewable diesel plant in Singapore that could receive Brazilian cargoes. Expansion projects are propelling US demand, including work that would bring capacity at Marathon Petroleum's Martinez Renewables plants in California to 2.35mn m³/y (40,750 b/d)and the Phillips 66 Rodeo unit in northern Californiato 3mn m³/y. These and other new projects will increase annual US demand for tallow by 5mn t. Maintenance on the horizon Maintenance at US refineries has Brazilian sellers bracing for a short-term drop in prices. Between May and June the Diamond Green Diesel (DGD) unit in Port Arthur, Texas, will shut down for maintenance, a stoppage that could impact demand for Brazilian inputs. Market participants have already observed a slight increase in domestic tallow supply, a change they attribute to maintenance at DGD. The advance of the soybean crop in Argentina is also expected to increase the supply of feedstocks to North American plants, as some refineries are returning to soybean oil after a hiatus of several years. The soybean oil quote on the Chicago Board of Trade (CBOT) is an important reference for the price of tallow. By Alexandre Melo Renewable feedstocks in Brazil on fob basis R/t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Colombia's electricity woes add to unrest against Petro


22/04/24
22/04/24

Colombia's electricity woes add to unrest against Petro

Bogota, 22 April (Argus) — Colombians took the streets of major cities and towns across the nation on Sunday to protest mainly against health, pension and labor changes, but potential power outages are also creating discontent. Authorities estimated that about 250,000 Colombians marched in widespread protests, sparked by changes in healthcare. Congress in April had rejected President Gustavo Petro's proposals in the sector, and the government the next day seized the two largest private-sector health insurers. Protesting healthcare workers say the government did this to implement changes through a back channel. "Regulatory noise and risk are likely to remain high amid announcements, proposals, and measures [that do not require congressional approval], aimed at changing the game's rules in strategic sectors," brokerage Credicorp Capital said. Colombians also protested being on the verge of electricity rationing like that in neighboring Ecuador as hydroelectric reservoirs remain at record-low levels. Several unions and other associations have long warned the Petro administration to take measures to offset the effects of the El Nino weather phenomenon. Electricity distributors last year called for allowing bills for energy purchased on the spot market to be deferred and for loosening price index rules, among other proposals. The national business council sent at least three letters to the president on the issue. At least nine separate letters calling for preparation to prevent blackouts were sent to the president and ministers. Several actions were only recently implemented . "There are no risk of electricity rationing in Colombia," former energy minister Irene Velez said in 2023. "We do not understand why some people are interested in generating panic." Government weather forecasts also overestimated rainfall expected for March, leading hydroelectric plants to use more water in the reservoirs than they otherwise would have, said director of the thermoelectric generation association (Andeg) Alejandro Castaneda. Reservoir levels stood at 29.5pc today, rising thanks to rains since 19 April, up from 28.75pc on 18 April. Electricity rationing is set to begin when reservoirs drop below 27pc, according to grid operator XM. By Diana Delgado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

German products demand up on supply concerns


22/04/24
22/04/24

German products demand up on supply concerns

Hamburg, 22 April (Argus) — German demand for heating oil and fuels rose sharply in the past week, with consumer concerns that conflict in the Middle East could restrict product availability were coupled with falling domestic product prices. Spot trade of heating oil, diesel and E5 gasoline submitted to Argus reached their highest weekly averages since the start of the year. The last time this amount of heating oil was traded was in December last year, and for gasoline and diesel it was at the beginning of October. Gasoline demand surged particularly in the Emsland and South regions, and middle distillates were primarily traded in Rhine-Main and Southwest. The missile attack by Iran on Israel on 13 April and Israel's drone attack on Iran on 19 April have heightened concerns of further escalation. An open conflict between Iran and Israel could affect supply of crude and gasoil from the Middle East by threatening major shipping routes of the Suez Canal, the strait of Hormuz and the eastern Mediterranean. These concerns led some German consumers to fill their tanks. Concurrently, product prices have fallen across Germany, further stimulating demand. Refineries in Karlsruhe and Neustadt-Vohburg have drawn buyers with fuel oil and gasoline prices below the German average. Heating oil at Miro's 310,000 b/d Karlsruhe traded at more than €2/100l below the national average, while gasoline at Bayernoil's 216,000 b/d Neustadt-Vohburg traded at a discount of almost €6/100l to the same average. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Europe 2.6°C above pre-industrial temperature in 2023


22/04/24
22/04/24

Europe 2.6°C above pre-industrial temperature in 2023

London, 22 April (Argus) — Temperatures in Europe stood at 2.6°C above pre-industrial levels in 2023, data from the World Meteorological Organisation (WMO) show. Europe last year experienced either its joint-warmest or second-warmest year on record, the WMO and EU earth-monitoring service Copernicus found today, in a joint report, European State of the Climate 2023 . The organisations use datasets covering different geographical domains for Europe. WMO includes Greenland, the South Caucasus and part of the Middle East in its dataset. Copernicus put the temperature in Europe last year at between 2.48–2.58°C above pre-industrial levels. The Paris climate agreement seeks to limit global warming to "well below" 2°C and preferably to 1.5°C. Europe is warming roughly twice as fast as the rest of the world. The global average temperature in 2023 was 1.45°C above the pre-industrial average, the WMO said earlier this year . It confirmed 2023 as the hottest on record. Climate scientists use the period 1850-1900 as the baseline for a pre-industrial average. Temperatures in Europe in 2023 were above average for 11 months of the year, and there was a record number of days with "extreme heat stress", the report found. The three warmest years on record for Europe have occurred since 2020, and the 10 warmest since 2007, it said. Electricity generation from renewables in Europe last year reached the highest proportion on record, at 43pc up from 36pc in 2022, the WMO and Copernicus said. Increased storm activity between October-December and above-average precipitation and river flow resulted in higher potential for wind power and run-of-river hydropower generation, respectively. Atmospheric concentrations of CO2 and methane — the greenhouse gases (GHGs) causing the most warming — continued to increase in 2023, "reaching record levels", the report found. It put CO2 concentrations at 419 parts per million (ppm) and methane at 1,902 parts per billion (ppb) on average last year. "Only around half of anthropogenic emissions of CO2 have been absorbed by land vegetation and oceans", the organisations said. GHGs from human activity are driving climate change, but the El Nino weather phenomenon also typically leads to higher temperatures. The El Nino weather pattern, which started in July 2023, peaked in December , the WMO said previously, but could still affect temperatures this year. There is a 60pc chance of La Nina conditions — which typically lead to lower temperatures — developing in June-August, the US National Oceanic and Atmospheric Administration said earlier this month. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US funds $28mn iron, steel decarbonization


19/04/24
19/04/24

US funds $28mn iron, steel decarbonization

Houston, 19 April (Argus) — The US Department of Energy (DOE) released plans to invest $28mn towards decarbonizing iron and steel production for 13 projects spanning nine states. The DOE's Advanced Research Projects Agency-Energy (ARPA-E) will manage the projects under the Revolutionizing Ore to Steel to Impact Emissions (ROSIE) program. The projects will focus on advance zero-process emission ironmaking and ultra-low life cycle emissions steelmaking. Funding will be split between multiple universities and manufacturing companies. States receiving funding include California ($4.01mn), Colorado ($2.87mn), Georgia ($2.84mn), Illinois ($3mn), Massachusetts ($6.16mn), Minnesota ($2.8mn), Nevada ($2.1mn), Pennsylvania ($760,000) and Utah ($3.48mn). The iron and steel industry currently accounts for 7pc of global greenhouse gas (GHG) emissions and 11pc of global carbon dioxide (CO2) emissions with demand projected to rise 40pc by 2050, according to ARPA-E. Following projected metrics by ROSIE, US CO2 emissions could decreased by 65mn tonnes (t), or 1pc. Global emissions could be cut as much as 2.9 gigatonnes, or 5.5pc. By Karly Lamm Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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