Chile, once 70% dependent on fossil fuels for energy... now walking the hydrogen path with Korea

20th Anniversary of Korea-Chile FTA
Increased Cooperation in New Energy Industries like Hydrogen
Expectations for Expansion of Korean Companies in Chile

Cooperation on 'green hydrogen' between South Korea and Chile is expected to expand in earnest.

On the 24th, the Ministry of Trade, Industry and Energy of South Korea and the Ministry of Energy of Chile held the 'Korea-Chile Hydrogen Cooperation Seminar' at the Four Seasons Hotel in Seoul to discuss cooperation in new energy industries such as hydrogen and renewable energy between the two countries. This is a follow-up measure after the signing of the Korea-Chile Low Carbon Hydrogen Cooperation Memorandum of Understanding (MOU) in 2021, aimed at creating more advanced cooperation plans.

On the same day, Ahn Deok-geun, Director General for Trade Negotiations at the Ministry of Trade, Industry and Energy, stated in a meeting with Diego Pardow, Minister of Energy of Chile, that "this year marks the 20th anniversary of the signing of the Free Trade Agreement (FTA) between Korea and Chile, a significant year, and since the FTA was signed, cooperation between the two countries has expanded into various fields such as trade, investment, energy, and minerals."

He added, "Chile, which has strengths in green hydrogen production, and Korea, which is leading in hydrogen utilization fields such as hydrogen vehicles, should strengthen cooperation in the hydrogen sector."

Director General Ahn also emphasized, "The Korean government is making policy efforts to transition to a hydrogen economy based on clean hydrogen, having announced a growth strategy for creating a clean hydrogen ecosystem and fostering the world's top hydrogen industry at the Hydrogen Economy Committee last November. As the energy paradigm shifts from fossil fuels to clean energy, new opportunities are opening, and cooperation between the two countries is necessary to secure a leading position in the hydrogen economy."

Chile, Previously Dependent on Fossil Fuels, Becomes a 'Green Hydrogen' Supplier

Chile has relied on fossil fuel imports for about 70% of its energy production. Based on the internal and external necessity for energy transition, Chile announced its 'National Green Hydrogen Strategy' in November 2020, the first among Latin American countries. At that time, Chile presented a vision to become a global clean fuel supplier based on its vast renewable energy resources. Based on this, it is promoting related policies such as expanding green hydrogen production and utilization and international cooperation.

The competitiveness in hydrogen and renewable energy comes from Chile’s geography. The country stretches long from north to south. The northern region has solar competitiveness due to high solar radiation, and the southern region has wind competitiveness due to high wind speeds, giving Chile world-class renewable energy potential.

Based on this, Chile has set a goal to achieve 100% carbon-free electricity by 2050. In non-electric sectors, it aims to use 70% carbon-free fuels. The share of renewable energy use is planned to increase to over 80% by 2030. Additionally, Chile aims to produce green hydrogen at a price of $1.5 per kilogram by investing 25GW of power by 2030.

As such, Chile has competitiveness in green hydrogen production, making it a country with great potential for clean hydrogen cooperation with South Korea. The Ministry of Trade, Industry and Energy explained that there are also expected opportunities for Korean companies to enter Chile in hydrogen utilization fields such as hydrogen vehicles and fuel cells.

Minister Pardow said, "We have established an action plan for 2023-2030 to become a green hydrogen supplier," and added, "To achieve this goal, it is necessary to develop technology, and we want to cooperate with Korea in that process."

This content was produced with the assistance of AI translation services.