Due to the carbon neutral targets signed by 185 countries, global demand for fuel hydrogen (H2) is expected to increase tenfold by 2050 and production costs to decrease considerably in the coming years.
The hydrogen industry is expected to reach half the size of the current oil market in 30 years, as it offers a sustainable alternative to fossil fuels if H2 is produced renewable energy. H2 produces zero emissions and can be used to move cars, buses, ships and even spaceships.
According to Energy Minister Juan Carlos, Chile plans to take action by increasing its renewable energy capacity to become one of the main producers and exporters of green hydrogen as a clean fuel by 2050. Geographic position of the Andean country - with sunny deserts in the north and intense and steady winds in the south - puts you at a comparative advantage over the rest of the world. Chile's green hydrogen could be made through an electrolysis process (the separation of molecules using electricity) that is powered by solar and wind farms.
Minister Jobet said:
“We are working to bring together a large number of actors, because we need to take advantage of the will of many to be able to take advantage of this potential. In Chile, we have huge natural resources to produce electricity at low prices, free trade agreements around the world and an open economy. “
The only thing missing is a market for electrolysers. Jobet added:
"We don't have equipment manufacturers to produce the electrolysers, so we need to attract these players to Chile."
For now, the government plans to increase the country's renewable energy capacity to 70% by 2030. Last year, they accounted for 44%. Its long-term goal is to reduce its net carbon emissions to zero by 2050. In the meantime, it will establish its green hydrogen manufacturing infrastructure.
“Green hydrogen will contribute more than 20% of the reduction in emissions that we need to achieve by 2050 to be carbon neutral. It is the key to moving towards carbon neutrality. ”
Chile can export US $ 30 billion in green hydrogen by 2050. This is the amount of copper that we export today.
Combining copper exports is very important because the material is currently the backbone of the mining country's economy, accounting for about 50% of its exports. Therefore, green H2 can be 'transformational' for the country's economy, with a considerable impact on local economic development and job creation.
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