Chilean clean energy developer Susterra will begin with a 20MW electrolyser in Antofagasta’s mining district, a $68m first phase set to scale to 100MW and eventually 200MW.

Initially, the plant will produce nine tonnes of green hydrogen per day, before reaching 45 tonnes and 90 tonnes per day, respectively, bringing the total project cost to $423m.

The hydrogen produced will be supplied to the local mining industry via tube trailers in a bid to decarbonise operations.

The green hydrogen will substitute diesel in mining processes that are hard to electrify, such as ore haulage, refining, smelting and transport.

Renewable energy will be provided from the Valle de los Vientos 900MW wind farm, operated by Enel GreenPower.

H2 View understands that this is the first environmental license issued in Chile for a large-scale green hydrogen project.

Mining contributed over 14% of Chile’s GDP in 2021, but the sector is rapidly shifting to renewable energy.

Copper, the country’s top export, was linked to around 0.2% of global greenhouse gas emissions in 2022. While the sector has already switched much of its electricity supply to renewables, hydrogen is seen as the next step for fuel substitution.

Susterra’s project supports Chile’s ambition to become a leading hydrogen producer and exporter, leveraging its vast renewable resources. By 2030, the country is targeting up to 25GW of green hydrogen capacity.