Wedoany.com Report on Feb 5th, The Chilean government has recently revised its national green hydrogen development plan, shifting its focus from the previously set 25 GW production target towards consumption and export directions. Before the new administration takes office on March 11, the current authorities plan to lower production targets, update cost estimates, and prioritize the development of domestic capabilities.
Energy Minister Álvaro García stated that the government aims to leave a strategy for its successor that "maintains faith in utilizing green hydrogen," but this strategy is based on a "new scenario" where domestic demand requires more support. The draft strategy abandons the original target of achieving 25 GW of electrolysis capacity by 2030, instead setting a domestic consumption target of 100,000 to 200,000 tons per year.
The plan also outlines an export target of 300,000 to 700,000 tons of green hydrogen per year by 2035. By 2050, the national production target for both domestic use and overseas export is set at 2 to 3 million tons per year. The government is conducting a public consultation on the new strategy, with a deadline of February 15.
While this adjustment is seen as a significant shift from the original 2020 strategy, the incoming administration describes it as a pragmatic reset. The updated strategy states: "In this update, the objectives aim to achieve the sector's expected outcomes. The pillar of the strategy regarding hydrogen as an engine for local development is strengthened, with a focus on efforts to consolidate domestic demand, which is crucial for leveraging exports."
The Chilean authorities have previously approved a $2.8 billion tax credit framework to support domestic green hydrogen applications. The country continues to increase investment in the hydrogen sector and, with its abundant renewable resources, is poised to become one of the world's lower-cost green hydrogen producers, exporting to high-demand markets such as Europe.
For developers and investors, this strategic shift means moving from rapid expansion to prioritizing projects that support demand, indicating that near-term opportunities in Chile may rely more on domestic offtake certainty than on export visions. Support for green hydrogen from the next government remains uncertain. Conservative candidate José Antonio Kast, who won the presidential election, has criticized what he calls ideologically driven environmental policies but still acknowledges the economic realities of the energy transition and the role of technological markets in driving change.
