Chile clears groundbreaking green H2, fuels project

Chile granted an environmental permit to a trailblazing green hydrogen project that will produce methanol and carbon-neutral gasoline and LPG.

The $45mn Haru Oni pilot project, belonging to the Highly Innovative Fuels (HIF) consortium led by Chilean firm AME, will be developed in the deep southern region of Magallanes, traditionally known for modest hydrocarbons production and penguins.

The project, which was approved unanimously by the Magallanes regional environmental commission today, will produce green hydrogen derived from water separated through electrolysis using 3.4MW of dedicated wind energy. The hydrogen will be combined with CO2 from the atmosphere and synthesized into green methanol, which will then be used to produce carbon-neutral gasoline and other products.

The initial project, based in the regional capital of Punta Arenas, will produce 350 t/yr of methanol and 130,000 l/yr of gasoline, and is designed to be scaled up in two subsequent stages.

The methanol and e-gasoline will be transported some 35km (21.7mi) by truck to Puerto Mardones for export.

The project will also produce 16 t/yr of carbon-neutral LPG.

HIF has support from the German government, and its partners include Italian generator Enel, German engineering giant Siemens and Chile's state-owned oil company Enap.

HIF is one of several green hydrogen projects taking root in Chile, where 1,800GW of solar and wind energy potential is some 70 times more than current installed capacity.

Underpinned by a 2050 net-zero emissions target, Chile unveiled a green hydrogen strategy in late 2020 with the promise of becoming the world's lowest-cost producer, decarbonizing the copper mining industry and diversifying exports.

Another leading green hydrogen developer is France's Engie, which is working with Chile's copper mining industry to decarbonize heavy transport and introduce green ammonia for manufacturing mining explosives.

By Patricia Garip