Chile Risks Falling Behind in Green Hydrogen Race Due to Permit Delays and Infrastructure Gaps

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Industry experts are increasingly concerned that Chile may be losing ground in the global green race, despite its initial advantages due to strong renewable resources and a favorable location for exports to Asia.

During an energy transition panel in Santiago, companies that have invested heavily in Chile's sector raised concerns that slow permitting processes and limited infrastructure, particularly in ports and energy transmission, are holding back the country's progress while other nations accelerate their efforts.

“We had a three, four year head start compared to the rest of the world in implementing these projects, but today that's down to months,” said Mario Marchese, project director for HNH Energy, an $11 billion green hydrogen project in Patagonia. “We're in a race to see who gets to markets first, and every day that window is closing, and we're losing that war.”

The HNH Energy project, backed by AustriaEnergy, Okowind, and , aims to produce 1.3 megatons of ammonia and 270,000 tons of hydrogen each year with a 1.4-gigawatt wind farm.

Marchese noted that the permitting process, which has already taken four years, has been the most challenging aspect of the project, though they hope to sign construction contracts by early 2027.

Katherine Orozco, project development manager for EDF Chile, also underscored Chile's advantages, pointing out its abundance of solar energy in the north and in the south, as well as its proximity to coastal ports. “When it comes to hydrogen, 60 or 70 percent of the cost is from electrical costs from renewable,” she said. “That's what should give us an advantage against the rest of the world, so we shouldn't lose that.” However, she cautioned that Chile lacks the transmission lines and ports necessary to support large-scale hydrogen exports, noting that has already started developing port infrastructure.

Both Marchese and Orozco acknowledged the government's support through public-private investments and proposed legislation to speed up permits, but both bills have faced delays in congress.

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