Chile Green Hydrogen Plan: No Buyers, No Financing for H2V Projects

Chile approved its Green Hydrogen Action Plan 2023-2030 via Decree 76, but the plan does not solve the core problem: there are no firm international purchase agreements for green hydrogen or its derivatives. Without signed offtake contracts, banks will not finance the multi-billion dollar projects needed to build production capacity. The International Energy Agency reports that binding contracts globally cover less than 2 million tons per year, while announced production potential for 2030 has dropped from 49 to 37 million tons due to cancellations and delays. Local challenges also slow progress. Environmental permitting processes, lack of shared infrastructure like ports and desalination plants, and a 5 to 10 year delay in market maturation all add risk. The plan includes a US$1 billion H2V Financial Facility and instruments inspired by H2Global, but these are seen as insufficient to replace the need for real buyers. Developing local demand in refineries and copper mining could help sustain initial projects, but export-scale production still requires international certification and binding contracts.