Chile will have its first hydrogen production plant through an electrolyzer powered by wind energy.

Although today the production of hydrogen through renewable energy is not yet competitive in terms of Kw cost, compared to production with natural gas or coal, there is no doubt that the progressive decrease in the costs of electricity production from renewable sources , in the coming years, will allow the opening of a very interesting market in terms of the location of totally green energy production.

As can be read from Enel's report on the hydrogen production plant in Chile, through the use of wind energy, the decarbonisation of industrial and civil systems also passes along this path.

Enel Green Power Chile (EGP Chile), a subsidiary of Enel Chile, plans to participate with the Chilean electricity company AME and future partners ENAP, Siemens Energy and Porsche, in the installation of a pilot plant for the production of green hydrogen through a powered electrolyser from wind energy in Cabo Negro, north of Punta Arenas, in the Magallanes region, subject to approval by local authorities and finalization of the financing structure.

The plant is scheduled to come into operation in 2022, making it the first project of its kind to produce hydrogen in Chile, as well as one of the largest in Latin America.

The announcement took place during an event attended by Chilean Energy Minister Juan Carlos Jobet.

Salvatore Bernabei, recently appointed global CEO of Enel Green Power and head of Enel's Global Power Generation business line said: “Green hydrogen can truly play an important role in the energy transition by supporting the decarbonisation of sectors whose emissions are more difficult to be demolished, and in which the electrification of end uses is not a simple solution.

Enel is focusing on this type of hydrogen, which is produced via electrolysers, powered by 100% renewable electricity.

This project, which is a milestone for the Group globally, can put our vision into practice; Specifically, a plant like this can allow us to analyze the best technological solutions to efficiently produce hydrogen by exploiting the wealth of resources and solid infrastructure of the Magallanes region.

As we are doing in Chile, we will continue to look for other countries around the world where similar initiatives can be launched."

A project in Patagonia

In a country with extraordinary natural resources, Patagonia stands out for having some of the best onshore wind conditions in the world thanks to its proximity to Antarctica, as demonstrated by a wind resources study conducted by EGP Chile over the past two years. These unique characteristics allow Patagonia to have a constant production of wind energy, which represents a key element in allowing the region to position itself as a green hydrogen development hub.

In particular, the Magallanes region needs to diversify its energy mix which was historically based on oil and gas, leveraging existing infrastructure to accelerate decarbonisation through green hydrogen generated by wind energy.

Green hydrogen in Chile

Chile is emerging as one of the countries with the greatest potential for the production and export of green hydrogen in the world. According to the Chilean Ministry of Energy, thanks to low-cost green hydrogen, by 2050, it will be possible to reduce the country's accumulated CO2 level by up to 20%.

The International Energy Agency estimates that Chile can produce 160 million tons of green hydrogen per year, doubling current hydrogen demand, and the price of green hydrogen will be competitive, according to Bloomberg projections with diesel in less than 10 years or so.

Enel in Chile is the largest electricity company by installed capacity with over 7,200 MW of which over 4,700 MW of renewable energy, specifically: over 3,500 MW of hydroelectric energy, over 600 MW of wind energy, around 500 MW of solar energy and around 40 MW of geothermal energy.

The Group also operates in the distribution sector through Enel Distribución Chile, which serves approximately 2 million customers, and in the advanced energy solutions business through Enel X Chile.

Enel Green Power, within the Enel Group, is dedicated to the development and management of renewables worldwide, with a presence in Europe, the Americas, Asia, Africa and Oceania.

A world leader in the renewable energy sector, with a managed capacity of over 46.4 GW and a generation mix that includes wind energy, solar energy, geothermal energy and hydroelectric energy, Enel Green Power is at the forefront in the integration of innovative technologies in renewable plants.