SANTIAGO, Nov 7 (Reuters) - Industry insiders are worried Chile is falling behind the global green hydrogen race despite having a head-start due to its strong renewable energy matrix and geographic advantage to export to Asian markets.
In a panel about energy transition in Santiago, companies betting billions on green hydrogen in the Andean nation said lengthy permitting and a lack of infrastructure, mainly ports and energy transmission, are holding the industry back while other countries are charging ahead.
"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 Chile's Patagonia.
"We're in a race to see who gets first to markets first," Marchese said. "And every day that window is closing and we're losing that war."
HNH Energy, backed by AustriaEnergy, Okowind and Copenhagen Infrastructure Partners, aims to produce 1.3 megatons of ammonia and 270,000 tons of hydrogen a year with a 1.4 Gigawatt wind farm. It's one of the largest green hydrogen projects in the world and the largest investment to go through Chile's environmental permitting process.
"We've spent four years preparing the environmental permit, we've spent dozens of millions of dollars to get to this stage and we still have a long road to go," Marchese said, adding that the permitting has been the most challenging part of the project and they hope to sign construction contracts in the first half of 2027.
Marchese noted that Australia is racing to reach Asian markets first and Brazil is also emerging as a global competitor.
Orozco said that one of the biggest challenges she sees is a lack of electrical transmission lines and ports to export green hydrogen. Brazil, she noted, has already started developing ports, giving it an advantage over Chile.
Both Orozco and Marchese noted that the government is aiding in public-private investment and two bills aimed at speeding up permits, but both have been delayed in congress.
