As countries of the world strive to tap the massive opportunities that exist in the green H2 market, Chile is also planning to change from being a fossil energy importer to a green H2 energy exporter. Its entry into the market has changed stats and the projects it is now undertaking have added to the big ones worldwide. For instance, its new project dubbed H2 Magallanes could per year, pump over 880,000 tons of hydrogen. A few months ago, China’s Sinopec with a projected output of 20,000 tons per year was the largest. With Chile’s entry, the equation has now changed, and its plant is no doubt going to take the global boss crown with regards to green hydrogen production and export.
While green H2 is a relatively new field, it’s been identified as one of the ways of achieving zero carbon emissions. It’s also a very versatile energy source that can be used in many applications. Some of those that have areas that can depend on green H2 include but are not limited to pharmaceuticals, food processing, and the steel industry. Once the right technologies are in place, there is no doubt that green H2 will be a major threat to fossil fuel suppliers. That’s likely to be the case since currently, a significant percentage of hydrogen comes from natural gas and coal. That’s not, however, the only source. Lots of explorations are underway to find non-expensive methods of producing it.
Some energy analysts have argued that Chile’s entry into the market seems sudden. However, a deeper analysis of its activities specifically in the energy sector shows that it is not a sudden entry. The country has for long been involved in the exports of many commodities and products. Yes, it is one of the leading when it comes to the export of fruit, fish, and other agricultural commodities. But that’s not its major strength. Its top export is copper. In fact, it has been argued over time that Chile’s venture into the copper industry is what sparked its interest in renewable solar energy, wind power, and now the highly praised sustainable green H2.
Chile’s H2 Magallanes, however, has a lot to accomplish first before it can start producing green H2 for export in the thousands of tons it has projected currently in its project. Experts have advised that the country must find a model that will not only make the project feasible, but also shorten its timeline. Fortunately, many investors have expressed interest in supporting the multi-billion dollar project. Many are already headed to the site and with the increase in financial muscle, there is no doubt the project will overtake China’s Sinopec to become the world’s largest producer of green H2. Indeed, Chile has made it clear that it plans and is very determined in making sure that green H2 becomes one of its leading exports in the coming years.
Going by the current trends, the competition to become the world’s leading producer of green H2 has narrowed down with the eyes now on the rivalry between Chile and China. So, will China counter-respond and launch another large project that will beat Chile’s? Well, time will tell. Besides, there are other factors (mainly technology and innovations) that are likely to determine who takes the lion’s share in the green H2 export market. It looks like there will be more to watch within the coming years as more countries enter the market with new projects and plans to take up the opportunities that exist in the green H2 market.
