Publishes Green Hydrogen Action Plan
25 Apr 2024
On 25 April 2024, the Ministry of Energy of Chile published its Green Hydrogen Action Plan 2023-2030. The Plan aims to attract foreign investment and position the country as a leading producer and exporter of green hydrogen and its derivatives. The plan is divided into two main implementation phases as follows:
The initial phase from 2023 to 2026 focuses on establishing the necessary enabling conditions for the growth of the green hydrogen industry. Key actions during this phase include:
- Defining environmental, social, and labor standards for the industry;
- Allocating state lands for the development of the green hydrogen and its derivatives industry;
- Streamlining permitting processes to provide certainty for investors;
- Promoting research and development through strengthened tax incentives like tripling the upper tax credit threshold under the R&D Law;
- Advancing economic and financial incentives such as tax benefits for green hydrogen projects;
- Developing relationships with potential buyers and export markets;
- Formally launching the $1 billion "Facility H2V" financial facility through CORFO (the production development agency of Chile) to catalyze investments;
- Establishing a public-private roundtable to discuss carbon pricing mechanisms like an Emissions Trading System (ETS) to boost domestic demand.
The second phase, from 2026 to 2030, will build upon the foundations laid in the first phase, with a focus on productive development and decarbonization emphasizing regional and local development. Actions include:
- Consolidating territorial planning instruments and regulations for the green hydrogen industry;
- Implementing local development initiatives and citizen participation frameworks;
- Preparing human capital and workforce for the green hydrogen sector;
- Potentially implementing market-based mechanisms like the ETS to create domestic demand, based on the earlier roundtable discussions.
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Type:
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Promotion and facilitation (Investment facilitation , Investment incentives)
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Industry:
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Manufacturing (Manufacture of chemicals and chemical products)
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Sources:
