Chile’s push to become a global leader in green hydrogen is gaining momentum, but as a new study reveals, turning vast renewable energy potential into commercial reality will require more than just abundant sunshine and wind.
A qualitative case study by Rodrigo Barra Novoa of ANDEAN-LAB, published in *UCL Open Environment*, examines Chile’s National Green Hydrogen Strategy—launched in 2020—and finds that while the country has built a strong strategic framework and attracted significant investment, critical hurdles remain before it can claim a dominant position in the emerging hydrogen economy.
“Chile has the natural resources to be a frontrunner,” says Barra Novoa, “but resource advantage alone doesn’t guarantee leadership. Institutional strength, technological innovation, and coordinated public-private action are just as vital.”
The study highlights a paradox: despite Chile’s world-class renewable energy capacity, the green hydrogen sector faces real-world constraints. Cost competitiveness is still a challenge, with production costs needing to fall further to compete globally. Infrastructure for transport and storage is underdeveloped, and water availability—ironically, given the desert landscapes—poses a bottleneck, as electrolysis requires large volumes of clean water.
Social acceptance also looms large. Local communities, especially in project-hosting regions like Magallanes and Antofagasta, are weighing the benefits of investment against potential environmental and social impacts. Meanwhile, global demand and pricing remain uncertain, leaving investors cautious.
Yet the progress is undeniable. The strategy has catalyzed over US$10 billion in announced projects, including large-scale production hubs and export partnerships with Europe and Asia. The government has streamlined permitting, established tax incentives, and set clear decarbonization targets—all designed to position Chile as a reliable supplier of green hydrogen and its derivatives, such as ammonia and synthetic fuels.
“Chile is not just producing hydrogen—it’s building an entire new industry,” Barra Novoa notes. “That means integrating energy policy with industrial development, workforce training, and regional planning.”
The study’s insights come at a pivotal moment. As the global race to decarbonize accelerates, countries with strong renewable resources—from Morocco to Australia—are eyeing similar pathways. Chile’s experience offers a cautionary tale: ambition must be matched with execution.
For energy executives, policymakers, and investors, the takeaway is clear. Green hydrogen is no longer a theoretical opportunity—it’s a near-term commercial reality. But success will depend on more than scale; it will require resilience in the face of technological, logistical, and social challenges.
Chile’s journey, as documented in *UCL Open Environment*, is a case study in how vision must be paired with rigor—if the country is to turn its renewable promise into a sustainable industrial future.