The mining company Anglo American launched a pilot plant for the production of green hydrogen generated using solar energy, which powers a forklift at the Las Tórtolas concentrator north of Santiago. Anglo American’s pilot plant is the fourth pilot project focused on green hydrogen in Chile, reflecting a growing global interest in producing this type of fuel, which is obtained through the electrolysis of water using renewable energy. This initiative joins the synthetic fuels project currently under construction in the Magallanes region, involving energy company AME and the state-owned enterprise Enap, along with other partners; the Engie and Enaex project to produce green ammonia for the manufacture of mining explosives; and a US$30 million project announced by GNL Quintero in partnership with Enagas and Acciona Energía.

The potential of green hydrogen, however, still faces several challenges. In addition to developing a market for this technology and adapting industry regulations and governance, the most important challenge is to significantly reduce its production costs. In 2018, producing one kilogram of green hydrogen cost between US$5 and US$6 per kilogram, according to the International Energy Agency (IEA). The magic number cited in the industry for the technology to be profitable is US$2 per kilogram of hydrogen. This is where Chile has an advantage, with highly competitive solar photovoltaic generation costs and significant wind energy potential in the southern part of the country.