Green Hydrogen Projects Spark Debate in Chile’s Patagonia
In the remote grasslands of San Gregorio, Chile, farmer Alfonso Campos faces a dramatic transformation to his surroundings. His family’s land, nestled in the serene Magallanes province of Patagonia, is set to be surrounded by an array of large-scale industrial projects. These include ammonia storage, a hydrogen plant, and numerous wind turbines, all part of a burgeoning green hydrogen industry.
Campos voices his concerns, stating, “If the ammonia leaks, it will poison everything. The noise of the windmills will also upset the animals, and the landscape will be turned into an industrial desert.”
Chilean Green Hydrogen Boom
The push for green hydrogen in Chile has seen significant investment from European and British companies, aiming to establish vast windfarms and solar parks. More than 50 projects are in the works mainly in Patagonia and the Atacama Desert, raising concerns among local farmers and environmentalists about potential impacts on wildlife and traditional livelihoods.
Green hydrogen is created by using renewable electricity to split water into hydrogen and oxygen. This hydrogen can be combined with carbon to produce e-fuels, or with nitrogen to create green ammonia, a potential replacement for fossil fuel-derived products.
With the European Union aiming to import 10 million tonnes of green hydrogen by 2030, Chile has become a key supplier. A €225 million agreement was signed in 2023 by the EU to fund projects in Chile, further backed by £5 billion in UK export credits.
Major Investments and Projects
Several large-scale projects are under development, such as the Austrian-Danish consortium HNH Energy’s plan to produce over 1 million tonnes of green ammonia annually near Campos’s farm. TotalEnergies, a French conglomerate, is investing $16 billion in a project featuring hundreds of wind turbines and a desalination plant.
Across the Magellan Strait, Hive and TEG, British firms, are investing $8 billion in a green ammonia plant, while Acciona Nordex and other companies are planning additional facilities on Tierra del Fuego.
Environmental Concerns and Local Voices
While the Chilean government is optimistic about economic benefits, environmental experts and community leaders express apprehension. Marine biologist Carmen Espoz Larraín highlights potential ecological disruptions, noting the impact of high-salinity discharge from desalination plants on marine life.
“We don’t know what megaprojects of this scale will do to the Patagonian ecosystem,” Espoz Larraín cautions.
Local Indigenous communities, like those in Taltal, worry about the environmental repercussions of solar parks and industrial developments. Brenda Gutiérrez, a community leader, articulates fears of a “dead seabed” due to chemical discharges, threatening their fishing-based lifestyle.
Industry and Government Perspectives
Despite environmental concerns, figures such as Luis Alvarado and Alejandro Villegas see potential for job creation and economic growth. Alvarado estimates 5,000 direct jobs could arise from just three projects, with indirect benefits for local service providers.
HIF, a company already producing green hydrogen, emphasizes a cautious approach to ecosystem impacts, with plans for a commercial e-methanol production facility.
As Chile navigates the challenges of becoming a leader in green hydrogen, balancing environmental protection with economic opportunity remains a pivotal issue.
Original Story at www.theguardian.com