Although the general manager of the Chilean Hydrogen Association (H2 Chile), María Paz de la Cruz, believes that there are other enabling aspects of the green hydrogen industry, such as territorial planning and regulatory updates, she stresses that "having high costs for energy withdrawals does not collaborate". In his opinion, the cost of electricity is a relevant challenge as it is the main raw material for green hydrogen, but he assures that "the creation of an industry that could be similar to that of copper in the future requires effort, collaboration and dedication". He adds that they know it is not an easy task and that there are many pending challenges, such as the lack of competitiveness of most green hydrogen applications with respect to their fossil fuel counterparts and obtaining social and environmental licensing to build and operate projects. "In H2 Chile we believe that we are in time to find solutions and move forward on these challenges," he says.
- From the confirmation of the problem, is the competitiveness of this industry at risk and, therefore, new projects and actors?
- The results showed the confirmation of what we expected, the systemic costs estimated to 2030 could jeopardize the economic feasibility of the projects connected to the SEN and, therefore, their loss of competitiveness. However, we do not believe that this will jeopardize the arrival of new actors since we have identified the problem in time, we have proposals and the authorities have shown interest in knowing them.we do not see an imminent risk to the competitiveness of the industry since Chile has the best solar irradiation in the world and strong Patagonian winds that allow us to obtain high plant factors. And, therefore, a competitive cost of renewable electricity.
- With these proposals can this problem be reversed or is it still a minimum to face the situation?
- The reduction of connection costs could undoubtedly be an important step forward for project developers. It is key to broaden the spaces for discussion on this matter to jointly identify the fastest and most effective alternatives.