Hydrogen Energy: Sustainable Innovation or Resource Exploitation?
Chile, a country rich in natural resources, is making strides in its green hydrogen initiatives. The Antofagasta and Taltal regions, in particular, are seeing significant developments in this area. Companies like Colbún (associated with the Horizonte wind park) and ENGIE (Puerto Andino terminal) are among those involved, with infrastructure support coming from public and private terminals located in Mejillones Bay.
The Chilean government has shown its commitment to green hydrogen through the creation of the Green Hydrogen Action Plan in 2023 and 2024. This plan complements the Green Hydrogen Strategy, which was published in 2020. Some projects are even integrated with solar farms, hydrogen plants, and export infrastructure in a single package.
However, not all developments have been met with approval. Indigenous communities in regions like Antofagasta and Puna de Atacama have expressed concerns about the encroachment of energy projects onto their territories. The Lickan Antay Atacameña community of Peine, for instance, has denounced new energy plants built without their consultation. Similar concerns have been raised in Taltal, south of Antofagasta, where large-scale green hydrogen projects threaten ancestral territories of the Chango people.
Moreover, the proposed green hydrogen projects in Magallanes are located dangerously close to areas protected for their high ecological importance, such as Bahía Lomas, a Ramsar site. This raises questions about the environmental impact of these projects.
Chile's green hydrogen ambitions are also facing challenges related to water scarcity. Hydrogen production increases the demand for water in this increasingly water-stressed country. Fishermen on the coast of Antofagasta are also concerned about the depletion of marine life due to growing industrial activities.
The Chilean government's strategy for hydrogen has involved less state control compared to lithium, with a focus on promoting commercial cooperation agreements and creating wealth funds to encourage private investment. This approach has led to the 11 billion-dollar green ammonia project in Magallanes, funded by HNH, which includes 194 wind towers and is one of 18 green hydrogen projects on the agenda for the region.
The EU has partnered with Chile to supply green hydrogen imports, aligning with the European Commission's decision to make hydrogen a key element in meeting European decarbonisation targets. Chile's goal is to become a global energy player through green hydrogen production.
However, the incorporation of monitoring tools and advisory councils in the 2024 Green Hydrogen Action Plan has failed to seriously address the underlying issues of the green hydrogen industry. Furthermore, some projects have been developed without statutory rights and protections such as Indigenous consultation, leading to denunciations from more than 100 networks and communities.
Companies are also accused of presenting projects to vulnerable communities with poor public services, making offers and promises that are hard to refuse. This raises concerns about the transparency and ethics of these projects.
Chile is also grappling with the impact of these initiatives on its economy. The government has begun increasing electricity bills in response to debts owed to energy companies after previous price freezes. This could potentially burden the already struggling households and businesses.
In conclusion, Chile's green hydrogen initiatives present a complex mix of progress, challenges, and controversies. While the country aims to become a global leader in green energy, it must navigate these issues to ensure sustainable and equitable development.
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