Chile signs green H2 agreement with EU ports

Chile struck a preliminary agreement with Belgium's Antwerp and Zeebrugge ports to facilitate future green hydrogen exports to the EU.

The deal comes after a meeting of Chile's energy minister Juan Carlos Jobet, Belgian energy minister Tine Van der Straeten and port representatives at the Cop 26 climate summit in Glasgow, Scotland.

It is aimed at ensuring international market channels for green hydrogen that Chile says it will supply at the world's most competitive prices, thanks to extensive solar and wind energy, and complement Santiago's earlier accords with Singapore and Rotterdam.

Chile's energy ministry forecasts $15bn in green hydrogen investment by 2030 in more than 60 projects, of which 15 have a start date for operations. By 2030, Chile expects to produce 1.2mn t/yr, of which 500,000 t/yr would be absorbed by domestic industries, including mining and steel.

Among the newest initiatives is a project to replace diesel with green hydrogen in the FCAB cargo railway serving northern Chile's extensive copper-mining industry.

Chile has pledged to reach climate neutrality by 2050.

Cloudy climate

The South American country's growing international climate credentials contrast with political volatility at home. Less than two weeks before general elections, the lower house of congress this morning approved a constitutional accusation against center-right president Sebastian Piñera for illicit gains from the 2010 sale of shares in a Chilean mining project. The accusation now shifts to the senate, where opposition parties are unlikely to marshal the required two-thirds of votes required to remove him.

Piñera's allies say the accusation is a political maneuver to discredit the ruling coalition ahead of 21 November elections.

According to recent polls, the two leading presidential candidates are far-left Gabriel Boric and far-right José Antonio Kast, with centrist rivals further behind. None is likely to jettison the government's hydrogen strategy, but contrasting platforms could cloud investment conditions regardless of who wins. A run-off ballot is likely in December.

By Patricia Garip