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UK Government Begins to Recognize Opportunities in Chile’s Emerging Offshore Wind Sector

UK offers financial support for UK and Chilean energy projects, focusing on green hydrogen, energy storage, and wind.
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UK government has outlined its financial support for companies in the UK and Chile that are involved or interested in energy projects in Chile. The support would focus on green hydrogen, energy storage, carbon capture, and offshore wind sectors. The financial assistance is set to be provided by the export credit agency UK Export Finance (UKEF).

Specific sub-sectors that are relevant to the UK’s capabilities and Chile’s needs have been identified, according to Camila Jorquera, the deputy country director for trade and clean growth at the British embassy in Santiago. Jorquera particularly emphasized the wind sector, considering Chile’s 4.70GW installed capacity and 1.87GW under construction.

Although Chile’s offshore potential is largely untapped due to technical challenges, the country could benefit from developing wind farms at sea. Such a strategy could address development challenges faced by renewable energy companies looking to build infrastructure on land.

Chile’s government recently announced plans to develop an offshore wind development roadmap in conjunction with the US Department of Energy and the World Bank. Furthermore, the British embassy in Santiago is planning a trade mission to Scotland, one of the world leaders in offshore wind capacity.

UKEF offers assistance to UK exporters and buyers or contractors of UK products in Chile, including trade insurance, working capital support, and loans. Contract status, UK content, transaction size, and due diligence and risk-analysis outcomes are considered in their support proposals. UKEF services are also accessible to Chilean firms investing in the UK.

The UK government is also focusing on the hydrogen sector, with plans in place for a participation program at the World Hydrogen Latin America conference in Santiago later this year. The conference will feature matchmaking sessions.

Chile has approximately 70 green hydrogen projects throughout the country, predominantly in the Antofagasta and Magallanes regions. Projects such as the Haru Oni e-fuels demonstration plant in Magallanes are leading the way.

Developments in energy storage are also underway, with the Chilean government recently publishing a decree on capacity recognition, which could encourage more investment. While lithium-ion batteries are currently the primary technology, there is an increasing interest in pumped storage and high-temperature sodium-sulfur solutions.

With regards to carbon, Chile plans to close or convert its roughly 5.5GW of coal-fired power stations for an emissions-free grid. Carbon dioxide is necessary for the production of e-fuels and can be obtained from the processing of biomass or directly from the air. Companies like HIF Global have already begun incorporating carbon into their processes.

Original Story at www.bnamericas.com

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