The Faro del Sur Project by Enel Green Power Chile and Highly Innovative Fuels (HIF) was awarded close to 16.9 million US dollars, the highest amount ever granted to a single project in the “First Call for Green Hydrogen Project Funding in Chile,” organized by Chile’s Production Development Corporation (Corfo, from its Spanish acronym).
The purpose of this fund is to accelerate the implementation of initiatives contributing to the energy transition to carbon neutrality. Faro del Sur is the largest initiative, and the only one in the Magallanes Region, to obtain funding.
“This marks a new step forward for a project that will produce green hydrogen through the wind-powered electrolysis process. It is a project that demonstrates our commitment to promoting innovative solutions that contribute to the sustainable development of the country,” said Fernando Meza, business development manager for EGP Chile.
The Faro del Sur project is expected to produce 25,000 tons of green hydrogen per year in the Magallanes Region, through the generation of wind power and the installation of electrolyzers for a capacity of approximately 240 MW.
“These types of incentives are one more step towards a sustainable economy that will help position Chile as one of the top producers of green hydrogen and its derivatives in the world,” says CEO of HIF Global, Clara Bowman.
The fund promoted by Corfo, which awarded a maximum total of 50 million US dollars, received applications from 12 national and foreign companies interested in developing and executing green hydrogen production projects in Chile. One of the requirements to participate in the process was that the projects consider an electrolyzer capacity of at least over 10 MW. Additionally, the commissioning of the projects must not take place later than December 31st, 2025.