Chilean Hydrogen
Pathway
Final Report
December 2020

CONFIDENTIAL AND PROPRIETARY
Any use of this material without specific permission of McKinsey & Company
is strictly prohibitedTable of contents
Chapter

Page

Chapter 1: State of global Hydrogen industry

Page 3-28

Chapter 2: Business case for domestic Hydrogenproduction and end use application

Page 29-50

Chapter 3: Business case for Hydrogen exportation

Page 51-56

Chapter 4: Hydrogen industry development targets androadmap

Page 57-60

Chapter 5: Relevant stakeholders for the hydrogen industry

Page 61-73

Chapter 6: Government role in hydrogen industry
development

Page 74-83
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2Chapter 1: State of global Hydrogen industry
Chapter content
description▪ State of the global Hydrogen industry, including: production, transportation, distribution andutilization of Hydrogen (specific focus on Green Hydrogen)▪ Development of hydrogen market, including: hydrogen projects and investment analysis by
key market and segment of the hydrogen value chain▪ Roadmaps and strategies for hydrogen development in key markets including key
strategic initiatives, incentive mechanisms and other forms of public support

Activities
included▪ Activity 1.1▪ Activity 1.2

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1.1/ Blue and Green hydrogen are two low-carbon production
methods of H2 with the highest future potential

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1.1/ Blue H2 is cheaper today, but Green H2 is the ´new solar´ withcosts decreasing rapidly
Global H2 demand and production costs1

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1.1/ The Green H2 production relies on carbon-free power generationand electrolyzers which split water H2 and an O2 biproduct

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1.1 / Hydrogen’s value chain is decomposed into production (‘green’or not), handling and final use (across several verticals)

Production(techniques)1

Reforming/ gasification of fossil feedstock
100%+ of current production. Natural gas, oil,coal or biogas is used to get hydrogen: Steam methane reforming (SMR)
 Petroliquids or coal gasification
Can be associated to a carbon capture & storage
facility to make H2 production more sustainable

Electrolysis
Splitting of water to get hydrogen, using
renewable or fossil fuel-based energy.
 2 power sources: on-site or from the grid 3 main technologies: alkaline (most mature),
PEM1 (increasing interest) and hightemperature splitting (nascent)

Other techniques
Other (nascent) techniques to produce hydrogen
include: Biomass gasification
 Biological / Bacterial production
 Direct solar water splitting

Handling(steps)Storage
Storage of hydrogen or hydrogen-based fuels &feedstock For short duration & small volumes, storing intanks and / or solid materials
 For longer duration & large volumes, storingin salt caverns, depleted gas wells or aquifers

Transmission
Transmission of hydrogen for long distances /large flows
 Can involve pipelines (H2 or methane), railtransport, ships and / or trucks
 Can transport hydrogen in a gaseous or liquid
form, or transport liquid organic H2 carriers

Distribution
Transmission of hydrogen for shorter distances tothe final user Can involve pipelines and / or trucks
 Can transport hydrogen in a gaseous or liquid
form, or transport liquid organic H2 carriersPower storage & generation
CO2 emissions
Final

use




Battery storage / BufferPower generation








Transport

Industry feedstockCars
Vans / Minibuses 
Trucks
Ships & PlanesForklifts
Trains & Trams

Oil refining
Ammonia / Methanol
production
Steel (iron ore reduction)

Industrial energy

Low industry heat
Medium industry heatHigh industry heat

Building heat and power

Heating
Onsite power generation

1. Hydrogen produced may then be transformed to hydrogen carriers (ammonia, methanol, etc.)
2. Polymer electrolyte membrane
Source: IEA 2019; McKinsey analysis

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1.1 / Since 2018, the hydrogen industry has been experiencing
unprecedented momentum
Transportation

Not Exhaustive

FCEV taxi
fleet in Paris
expanded to
100 FCEVs

Foundationof Japan H2
Mobility

Shell and ITM
Power agree tobuild then world's
largestelectrolysis plant(10 MW) in
Germany

Hydrogenroadmap forthe
Netherlands

2018

Mar
29

Jan
18

Chinese plansto build hydrogen
infrastructure for~50k FCEVs by2025

NEL announces tobuild world's
largest electrolyzer
production plant(360 MW/year) inearly 2020

Mar
5

Siemens andPowerCellannounce
developmentof fuel cells
for ships
May Jun
24
4

Jun
11

May May2
14

Toyota aims for
30k FCEV sales
per year after2020 – build
two new fuelcell facilities

Frenchstrategy plan:
France asa leader inhydrogentechnology

Engie's power-togas demo project
starts injection of 6%hydrogen in the gas
grid, rising to 20%

Source: Press releases; McKinsey

Firsthydrogentrain starts
operatingin Germany

ITM Power
gets funding to
explore 100
MW power-togas storage
project

HydrogenCouncil
expands
to 53
members

Hyundaiannouncessupplyof 1,000hydrogenfuel celllorriesto Swiss H2
EnergyAug
15

Jul Aug
25 14

Announcement ofa test flightof ZeroAvia
hydrogenpowered
six-seater
airplaneIndustrial energy

Building heat

ChineseWeichaistrategicallyinvests
USD 163m
in Ballard

Sep Sep
517

100 MW powerto-gas project by
Gasunie, Tennet
and Thyssengas
starting 2022
Oct
3

Sep Sep
27 28

VW and Stanford
University
announces significant
reduction in platinum
use for fuel cells

EU energy
ministersannounce jointhydrogen R&D

Hyundaiannounces FCEV
Vision 2030: 7bn
USD invest,
700.000 units by
2030

Northeastof the USannounces startof HRS roll-out

Sep Sep
18 27

Aug Aug
22 29

Power generation/storage

New “H2Bus
Europe” funding
program for 600
fuel cell buses(EUR 40m)

Oct Oct
10 12

Oct
16

Hyundai announces
to sell 5,000 FCEVs
to France by 2025

Australian Renewable
Energy Agency announces 2-year trial injecting
green hydrogen into
Sydney's gas gridtk announcescarbon-neutrality by
2050, $10bn EUR
investments

Jan
2019

Dec
12

AirLiquide
and Lindeannounce
expansion ofliquid H2
production in
US

Jan
25

Feb
5

Feb
18

Yara andEngie tobuild 20 MW
greenhydrogenplant

China beats FCEV
target of 2020 in 2018,
on track to becomelargest fuel cell market

Hydrogen Production

Hydrogen Infrastructure

Key trends in
2019

RWE andInnogy announceplans for 100 MW
electrolyzer in
Netherlands

EDF
launches
subsidiary todevelophydrogensolutions forindustry

AirLiquide
acquires ~20%
of Hydrogenics

Oct Nov
22

Oct
14

Overarching

Mar

Shipmaker CMB
announces
severalhydrogeninvestments

June
15

Apr
8

June
29

June
19

IEA launcheshydrogen reportwith major
reversal of theirperspective,
report endorsedby G20 energy
ministers

Orstedincludes H2 in
Dutch offshore
auctionBosch andHanwa
invest over
$230m inNikolaCummins
acquiresHydrogenics

Sep
5

Aug
19

Aug
27

Linde
announces
quadruplingof hydrogenand syngas
capacity at$1.9b
JurongIslandcomplex

Sep
3

CNH
announces$250m
investment
in Nikola
and JV forhydrogentruck
production

Acceleration of
momentum as
decarbonizationcommitments
become more
important
New segments
growing, e.g.
trucks, trains,
ships, synfuelPush from utilities,
renewable
developers and oil& gas companies

Large-scale
projects withwater
electrolysis,
mostly for use inindustry(fertilizers,
refining)

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1.1 / Investment has been led by large industrials teaming up forlarge flagship projects – to reach technological and commercial
maturity
100 MW Power-to-Gas

Magnum H2 power plant

Northern lights
Hybrit – Steel CO2 free

H2 Mobility Korea

Falkenhagen

H2 FC trains
H2 FC trucks

H2 Mobility
Japan

Hynet and H21
heating UK

LH2 supply chain

Offshore hydrogen

Westküste

Source: Press releases; McKinsey

Centurion – Cavern –energy flexibility

Rhineland refineryGreen steel

H2 FC trucks fleet

20 MW green
H2 production
for ammonia

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91.1 / Global green H2 production capacities are limited, but
expected to increase significantly with ~9.5 GW announced until
2025

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101.2 / Countries have establish hydrogen roadmaps with different
levels of detail on key issues for the promotion of the industry

Domains

Indicators

Detailed next

Mentioned but not detailed

Considered in detail

PRELIMINARYNOT EXHAUSTIVE

European Union

Netherlands

GermanySouth Korea

Australia

H2 production
projection (Mton)

1Mton by 2024
10Mton to 2040

NANA

0.5 Mton to 2022
5 Mton to 2040

NA

11M 2040

Installed electrolysis
Capacity

6GW by 2024
40GW by 2030

0.5 GW by 2025
3-4GW by 2030

5GW by 2030
10GW by 2035/40

NANA

5 GW 2025
25GW 2030

Investment

180-470 EUR B by
2050

NA

9 EUR B to boost h2
demand

2.3 USD B to 2022 for
the H2 vehicle industry

NA

45 USD b 2030
+300 USD b 2050

1

Vision and targets

2

Regulation andlicensing3

Coordination andpartnerships

4

Financing andincentives

5

Infrastructure

6

Research &Development

7

Skilled Labor

Chile

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1.2 / The EU Hydrogen Strategy For a
Climate Neutral Europe
NOT EXHAUSTIVE

General approach

Overview of key action areas

The EU has agreed on its EU
Hydrogen strategy as a roadmap
to build up a large-scale greenhydrogen industry

Vision &targets

The roadmap is divided into 3
phases until 2050 that aim atreaching increasing levels of
maturity for the H2 market
The strategy explores how greenhydrogen can help reducing the EU
economy’s carbon emissions in a
cost-effective way

It is in line with the EU’s goal to be
climate-neutral by 2050

Cumulative investment needs
in Europe, EUR bn

2025-30

Infrastructure

6 GW

Of installed electrolysis capacity
by 2024installed electrolysis capacity
40 GW Ofby 2030

Explore support policies to increase demand
Implement EU-wide criteria for low-carbon H2
certification and introduce a common threshold

Build up infrastructure for fueling and transport

Green hydrogen production targets,
Million tons

Design market rules to ensure liquid markets andto remove barriers for repurposing gas
infrastructure
R&D

2030-50Develop an investment agenda and support further
strategic investments

Develop a pilot scheme for a Carbon CfD2 program

180-470

24-42

Build a concrete project pipeline by end of 2020

Coordination
Strengthen EU leadership internationallyand partnership
Start cooperation with Southern and Eastern
Neighborhood partners, Energy Community
countries, and the African Union
Financing andIncentives

Key commitments and targets

Develop pilot projects that test full value chains
Facilitate demonstration of H2 -based
technologies

10

1
2024

2030

11. Contracts for Difference
Source: European Commission 2020 - A hydrogen strategy for a climate-neutral Europe

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1.2 / The EU’s Hydrogen Strategy aims at achieving a renewablehydrogen mass market based on a 3-phase-roadmapx

Objective

Electrolysis capacity
targets, GW

Related amount of green hydrogen production in the EU, million tons

Phase 1: 2020-2024

Phase 2: 2025-2030

Phase 3: 2030-2050

Market launch – Decarbonize existing hydrogenproduction and facilitating take up of hydrogenconsumption in new end-uses

Scale up – Expand production and end-use to
additional sectors to develop hydrogen as
intrinsic part of an integrated energy system

Mass market – Deploy renewable hydrogen atlarge scale to reach all relevant hard-todecarbonize sectors

1

10

?

6

40

Infrastructure
roadmap

Mostly local on-site supply combined withselective gas blending and build-out start ofcomprehensive refueling infrastructure1
Planning of medium range and backbonetransmission infrastructure

Expansion to regional hydrogen clusters withtransport over short distances also throughdedicated hydrogen pipelines
Need for an EU-wide logistical infrastructure
to emerge
400 additional refueling stations (no year
specified)

Expansion to EU-wide hydrogen infrastructureand hydrogen trading with non-EU partners

Targeted end-use
sectors2

Transport (buses, trucks)

Transport (rail, selected maritime, others)

Transport (aviation, long distance maritime)

Heavy industries (refineries, steel, chemicals)

Heating (residential, commercial)

Synthetic fuels production

Power system flexibility (storage, backup,
buffering)

Selected support
schemes

Revision of the ETS and potentially a carbon border adjustment mechanism
Carbon contracts for difference3, competitive tenders and quotas for end-use sectors
The upcoming Sustainable and Smart Mobility Strategy adds further support for transport uses

No dedicated support schemes stated forPhase 3 as hydrogen mass market expected tocarry itself

1. Refueling infrastructure build-out to continue across phases in line with increase in demand for transport applications 2. From phase 2 targeted end-use sectors refers to additions to the sectors mentioned in the previous phase(s)3. Scheme potentially to be applied within replacement of existing hydrogen production in refineries and fertilizer production, low carbon and circular steel or maritime and aviation applications 4. Focus on hydrogen production capacities
Source: European Commission 2020 - A hydrogen strategy for a climate-neutral Europe

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1.2 / Key actions in the EU’s Hydrogen Strategy for a climate-neutral
Europe – Enabling environment
NOT EXHAUSTIVE

DomainKey measures

Description

Vision andtargets

Introducing aroadmap to 2050 for
a hydrogenecosystem

Establish a clear vision on hydrogen production targets and deployment timeline, as well the most relevant end-use sectors per phase
Introduce actions around 5 key dimensions: develop an investment agenda, boost demand an scale up production, design an enabling
framework, promote research and innovation, strengthen the international dimension
Provide a broad forum to coordinate investment by all stakeholders and engage civil society, through sector-based round tables and a policymakers’ platform, supervised by the European Clean Hydrogen Alliance

Regulation
Designing andand licensing enabling market
rules

Design enabling market rules for the deployment of hydrogen, including removing barriers for efficient hydrogen infrastructure development(e.g. via repurposing), and ensure access to liquid markets for hydrogen producers and customers and the integrity of the internal gas market,
through the upcoming legislative reviews (e.g. review of the gas legislation for competitive decarbonized gas markets) (2021)
Develop third-party access rules, clear rules on connecting electrolyzers to the grid and streamlining of permitting and administrative hurdles toreduce undue burden to market accessWork to introduce a comprehensive terminology and European-wide criteria for the certification of renewable and low-carbon hydrogen (byJune 2021)
Propose measures to facilitate the use of hydrogen and its derivatives in the transport sector in the Commission’s upcoming Sustainable andSmart Mobility Strategy, and in related policy initiatives (2020)
Coordination Reinforcing EU
andleadership in
partnerships technical standards
and regulations

Strengthen EU leadership in international technical standards, regulations and definitions on hydrogen
Develop the hydrogen mission within the next mandate of Mission Innovation (MI2)

Promote cooperation with Southern and Eastern Neighborhood partners and Energy Community countries, notably Ukraine on renewableelectricity and hydrogen
Set out a cooperation process on renewable hydrogen with the African Union in the framework of the Africa-Europe Green Energy Initiative
Develop a benchmark for euro denominated transactions by 2021

Source: European Commission 2020 - A hydrogen strategy for a climate-neutral Europe

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1.2 / Key actions in the EU’s Hydrogen Strategy for a climateneutral Europe – Investments and incentives
NOT EXHAUSTIVE

DomainKey measures

Description

Financingandincentives

Developing an
investment agenda
for the EU

Through the European Clean Hydrogen Alliance, develop an investment agenda to stimulate the roll out of production and use of hydrogen andbuild a concrete pipeline of projects (by end of 2020)
Support strategic investments in clean hydrogen in the context of the Commission’s recovery plan, in particular through the Strategic European
Investment Window of InvestEU (from 2021)
Explore additional support measures, including demand-side policies in end-use sectors and a carbon Contracts for Difference program

Infrastructure Designing aframework for
infrastructure

Start the planning of hydrogen infrastructure, including in the Trans-European Networks for Energy and Transport and the Ten-Year Network
Development Plans (TYNDPs) (2021) taking into account also the planning of a network of refueling stations

R&D

Launch a 100 MW electrolyzer and a Green Airports and Ports call for proposals as part of the European Green Deal call under Horizon 2020
(Q3 2020)

Promoting researchand innovation inhydrogentechnologies

Accelerate the deployment of different refueling infrastructure in the revision of the Alternative Fuels Infrastructure Directive and the revision of
the Regulation on the Trans-European Transport Network (2021)

Establish the proposed Clean Hydrogen Partnership, focusing on renewable hydrogen production, storage, transport, distribution and key
components for priority end-uses of clean hydrogen at a competitive price (2021)
Steer the development of key pilot projects that support Hydrogen value chains, in coordination with the SET Plan (from 2020 onwards)
Facilitate the demonstration of innovative hydrogen-based technologies through the launch of calls for proposals under the ETS Innovation Fund(first call launched in July 2020)

Launch a call for pilot action on interregional innovation under cohesion policy on Hydrogen Technologies in carbon-intensive regions (2020)
Skilled labor

N/A

Support the needed adjustments in upskilling and in the labor market through the European Clean Hydrogen Alliance

Source: European Commission 2020 - A hydrogen strategy for a climate-neutral Europe

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1.2 / The EU supports hydrogen innovation, demonstration andscale up through different instruments
EU Funding

Main relevant examples

Financial instruments with risk sharing component

Pre-commercial
development
Proof ofconcept

Funding sources
EU

Pilot

Loans

Technical AssistanceFirst ofa kindUptake, market ready,roll-out

Demonstration

Scale up

Roll out

Horizon Europe
Connecting Europe Facility (CEF)

LIFE ProgrammeInnovation Fund
InvestEU

InnovFinEIB Loans
EIB Advisory Hub (EIAH)

Hybrid, blending EU andnational funding

European Structural and Investment Funds (ESIF)

National Funding on thebasis of a European plan

Important Projects of Common Interests (IPCEI)McKinsey & Company

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1.2 / South Korea Hydrogen Strategy
pursues industrial competitiveness andgrowthGeneral approach

Overview of key action areas

Long-term targets until 2040 werereleased in the "Hydrogen Economy
Roadmap of Korea" and the "National
Roadmap of Hydrogen Technology
Development" in 2019

Vision andtargets

Next to hydrogen mobility, the strategy
focuses on the long-term establishment ofa "hydrogen-powered" society, with key
areas being the production of hydrogenvehicles, hydrogen-related
infrastructure and hydrogen for power
generation
Key measures include government
funding, subsidies, industry alliances anddevelopment partnerships with othercountries such as Australia, Saudi Arabia,
Norway and Israel

National OEMs and suppliers alsoannounced significant investments intohydrogen, e.g. Hyundai Motor Group andits suppliers plan to invest a total of USD
6.7 bn and to produce 500k FCEVs
annually by 2030
1.

Established targets on FCEV production
and refueling stations in the country

Regulation andlicensingEstablish legal safety standards toensure the reliability and stability of thehydrogen economy

Coordination andpartnerships

Establish a cooperation system among
Korea, China, and Japan, and reinforce
participation in global partnerships (e.g.
Hydrogen Council)

R&D

Create of a Hydrogen Industry Cluster(2021) for R&D cooperation between
relevant players

NOT EXHAUSTIVE

Key commitments and targets

No. 1

fuel cell producer worldwide

6.2 MnFCEV annual production
capacity (incl. passenger cars,
trucks, and buses) by 2040

2.3 BnUSD

for the establishment of apublic-private hydrogen vehicleindustry ecosystem by 2022

Hydrogen1 consumption targets,
Million tons per year
5

Skilled labor

Create a safety professional
qualification to manage safety across allprocesses of the hydrogen value chain

0,5
2022

2040

Includes grey, blue, and green hydrogen. By 2040 the target is to use 70% low-emissions hydrogen (i.e. blue and green)

Source: South Korean hydrogen roadmap; MOTIE; Ifri 2018; Green Car Congress; Press search

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1.2 / South Korea focuses on scaling up domestic
production of transport and electricity segments
NOT EXHAUSTIVEx

2018
Hydrogen1
consumption, million
tons per year
Infrastructure
roadmap

Targeted end-use
sectors2022% share target of low-carbon hydrogen

2040
5

0.1

14 refueling stations
500 tube trailers
200km of pipelines

Transport: 1.8k FC passenger vehicles
production capacity, 2 buses

70%

0.5

310 refueling stations
Introduction of high-pressure trailers fortransport, and large-scale gas storage andtransportation
Establish pipelines near by-product H2
production hubs
Build infrastructure for overseas production(from 2022)

1200 refueling stations

Transport: 79k FC passenger vehicles
production capacity, 2k buses

Transport: 5.9 Mn FC passenger vehicles
production capacity, 60k buses, 120k taxi fleet,
120k trucks. Domestic and for export2. Ships,
trains, and drones

Centralized power generation: 1.5 GW
Decentralized power generation (i.e. home fuelcells): 50 MW

Liquefaction and liquid and solid storage andtransportation (2030)
Construction of a nationwide high-pressure
pipeline network (2030)
Establish nationwide supply infrastructure (2030)

Centralized power generation: 15 GW
Decentralized power generation: 2.1+ GW

Selected support
schemes1.

Subsidies for FCEVs purchase to incentivize domestic production of vehicles at the beginning of the strategy (no year specified). Additionally, thegovernment will also provide funding for the initial expansion of refueling stations and establish more relaxed permit restrictions.
Support fuel cells deployment for power generation by my means of weighted Renewable Energy Certificates. Provision of financial incentives forhome fuel cells such as the establishment of an LNG-exclusive tariff by 2022

Includes grey, blue, and green hydrogen. Includes domestic production and imports;

2. In total, 3.3 Mn units for export and 2.9 Mn units for domestic consumption.

Source: Ministry of Economic Affairs and Climate Policy of the Netherlands; IEA; International Hydrogen Strategies (World Energy Council Germany); Hydrogen Economy Roadmap of Korea

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1.2 / Key actions in for the creation of the hydrogen industrial
ecosystem in South Korea – Enabling environment
NOT EXHAUSTIVE

DomainKey measures

Description

Vision andtargets

Fostering ofhydrogen industry

Focus on creating a new industrial ecosystem and placing South Korea as a global leader in hydrogen utilization, by establishing clear targets,mainly in the transport and power generation sectors
Support all stages of technological development throughout the entire value chain, from development of source technology in hydrogen-powered
vehicles, core components of fuel cells, and storage and transportation, to demonstration, commercialization, and improvement of stability
Develop guidebooks on hydrogen safety that address public concerns and include them in the school curricula,
Designate a ‘Hydrogen Day’ and hold an exhibit with new technologies and programs

Regulation
Promoting growthand licensing across the entire
value chain

Start a detailed roadmap for supporting the technological development throughout the entire value chain, in collaboration between the Ministryof Industry, Ministry of Science and Technology, Ministry of Land, and the Ministry of Water Resources. In addition, launch a cross-ministerial
preliminary feasibility study for hydrogen (2021 to 2030)
Establish legal safety standards to ensure the reliability and stability of the hydrogen economy throughout the entire value chain. Enactment of a“Hydrogen Economy Act” to provide an institutional base in H2 2019
Provide relaxed licensing standards for transportation companies introducing eco-friendly vehicles like hydrogen buses

Coordination Enhancing
andinternational
partnerships cooperation andindustry alliances

Lead international standardization and evaluate at least 15 cases technical standards in hydrogen production, storage vessels, fuelingsystems, and fuel cells by 2030
Establish a cooperation system among Korea, China, and Japan, and reinforce participation in global partnerships (e.g. Hydrogen
Council)
Enhance partnerships for the development of overseas import base from e.g. Middle East and Central and South America
Promote a hydrogen economy in South Korea through industry alliances and international partnerships• HyNet (e.g. Hyundai, Air Liquide) promotes the establishment of hydrogen refueling infrastructure• H2Korea and FCHEA sign MoU in Feb. 2020 to increase collaboration in the hydrogen economy

Source: Ministry of Economic Affairs and Climate Policy of the Netherlands; IEA; International Hydrogen Strategies (World Energy Council Germany); Hydrogen Economy Roadmap of Korea

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1.2 / Key actions in for the creation of the hydrogen industrial
ecosystem in South Korea – Investments and incentives
NOT EXHAUSTIVE

DomainKey measures

Description

Financingandincentives

Securing the selfproliferation of thetechnology

Offer subsidies for FCEVs purchase to incentivize domestic production of vehicles and subsidies for the operation of refueling stations as wellas establish more relaxed permit restrictions
Support fuel cells deployment for power generation by my means of weighted Renewable Energy Certificates. Provide financial incentives forhome fuel cells such as the establishment of an LNG-exclusive tariff by 2022
Support FCEV business partners with long-term, low-interest policy loans and investment expenses
Promote financial support to establish mass production facilities

Infrastructure Fostering
technology maturity
and expansion

Establish a supply infrastructure network nationwide by 2030
Convert from high-pressure gas storage to high-efficiency liquefaction and liquid and solid storage
Reduce cost of hydrogen distribution by establishing high-efficiency, high-capacity hydrogen storage and transportation systems

R&D

Performing largescaledemonstrations andsupporting domestic
production

Create a Hydrogen Industry Cluster (2021) for R&D cooperation and for the development of a large-scale testbeds
Help selected companies to secure a global position with R&D and finance support
Build up large-scale demonstration projects for different end-uses. Selection of Ansan, Ulsan, and Wanju/Jeonju as national testbed cities by theSouth Korean Ministry of Land, Infrastructure, Transport, and Tourism.
Invest to optimize the production of FCEV parts. Public funding for the investigation of hydrogen trains efficiency and stability, application of fuelcells on ships, and other transport-related activities

Start a pilot project for usage of hydrogen trucks in the public sector, and a demonstration project for the conversion of general freight trucks
Skilled labor

Training of safety
standards anddevelopment
specialists

Create a safety professional qualification to manage safety across all processes of the hydrogen value chain
Establish a training program covering the design, operation, and safety of hydrogen refueling stations, for station managers. Train corepersonnel on the design, production, and maintenance of fuel cells,
Support SMEs with research personnel and recruitment

Source: Ministry of Economic Affairs and Climate Policy of the Netherlands; IEA; International Hydrogen Strategies (World Energy Council Germany); Hydrogen Economy Roadmap of Korea

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1.2 / Dutch Hydrogen Strategy
NOT EXHAUSTIVE

General approach
The h2 roadmap until 2050 was released in the
Dutch “National Climate Agreement" in 2019,and further specific measures were introducedin the “Government Strategy on Hydrogen" in
2020
The strategy places hydrogen as a key enablerin the long-term energy transition andincludes specific targets in transport, being
other sectors’ roadmap subject to further
analysis and cost reductions

Overview of key action areas
Regulationand licensing

Implement safety standards and apolicy framework for hydrogensafety risks

Coordination
andpartnerships

Promote consultations and bilateral
cooperation with North Sea
countries to exploit the significant
potential of offshore wind energy

Key actions include government support
through new and existing support schemes,international and public-private cooperation, andR&D
Additionally, the Dutch government launchedthe Hydrogen Valley initiative to establish ahydrogen industry, as response to declining
gas industry in Northern regions Groningen,
Drenthe and Friesland. Financed with EUR 20
Mn (~MUSD 23.4) by the EU, and EUR 70 Mn(~MUSD 82) by a consortium.
Currently there are 9+ GW of hydrogenprojects announced, ramping up towards 2040

R&D

Support H2 R&D projects through different
programs such as MOOI2 tenders (EUR
17 M) and DEI+ program, (EUR 15 M per
project )Skilled labor

Comprehensive framework to tackle labor
issues in the National Climate
Agreement including specific regional
agendas for education development andlabor market improvement

Source: Dutch Government Strategy on Hydrogen, Government publications; International Hydrogen Strategies (World Energy Council Germany)

Key commitments and targets

0.5 GWof installed electrolysis
capacity until 2025

3-4 GWof installed electrolysis
capacity until 2030

100%

climate-neutral economy by2050

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1.2 / Dutch Hydrogen Strategy
2025

2030

2050
?

Electrolysis capacity
targets, GW

3-4

0.5

Infrastructure
roadmap

50 refueling stations. 10% investment costs
reduction per year

N/A

N/A

Port of Rotterdam as international hub for hydrogen import and distribution across Europe (no timeline specified)
Evaluation of the necessity for grid strengthening and of an obligation for hydrogen blending into the gas grid (no year specified)Targeted end-use
sectors

Transport: 15k FCEV, 3k HDVTransport: 300k FCEV

Aviation fuels: 100% blending obligation

Shipping: increase use of hydrogen in shipping
industry (no year specified)Aviation fuels: 14% blending obligation

Power generation: long-term relevance ofhydrogen (no specific targets/plan provided)

Industry: upgrading and refineries mentioned
but not concrete plans statedSelected support
schemes

Building sector: higher relevance after 2030
due to uncertain technology costs

For a transitional period, to enable scaling up, operational cost support will be available starting 2021 with an annual budget of EUR 35 Mn1Starting in 2020, the existing SDE++ scheme2 for the generation of sustainable energy will include electrolysis
Development of a system of Guarantees of Origin for green H2
Allocation of EU funds through the H2 Platform

1. The funds are made available through rearranging part of the existing DEI+ funds; 2. In total 2,000 full load hours are eligible for subsidy through this scheme with a maximum subsidy amounting to 300 EUR/ton abated CO2
Source: Dutch Government Strategy on Hydrogen, Government publications; International Hydrogen Strategies (World Energy Council Germany)

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1.2 / Dutch Hydrogen Strategy – Enabling environment
NOT EXHAUSTIVE

DomainKey measures

Description

Vision andtargets

Introducing a vision
for the future basedon guidance andphasing

Establish generation and sector targets in addition to those presented in the Dutch National Climate Agreement. The focus is on the following
sectors: ports and industry clusters, transport, built environment, electricity sector, and agricultural sector
Retain the current strategic position as an energy hub
Foster cost reductions in order to unlock scaling up of hydrogen production and the subsequent set up of the supply chain, by means of new
and existing support schemes

Regulation
Developing policy
and licensing tools to facilitate
deployment incollaboration withthe private sector

Introduce a policy agenda based on 4 pillars: legislation and regulation, cost reduction and scaling up green hydrogen, sustainability on final
consumption, and a supporting and flanking policy
Formulate a National Hydrogen Programme as part of the National Climate Agreement, based on the hydrogen phasing plan leading up to
2030
Review the formulation of a position on the regulation of the value chain. The main goals are to facilitate the market, to ensure security of supply,
and to keep social costs the lowest possible
Implement safety standards based on international and European guidelines, and implement a policy framework for hydrogen safety risks
Launch a public-private Hydrogen Safety Innovation Programme to address safety issues

Coordination Strenghtening
andEuropeanpartnerships cooperation

Communicate directly with the European Commission regarding EU hydrogen policies
Start initiative, together with Austria, to develop common approaches to critical issues such as standards, market incentives and market
regulations, in a Forum with Benelux, Germany, France, Austria and Switzerland
Promote consultations and bilateral cooperation with North Sea countries to exploit the significant potential of offshore wind energy as key
source for the production of green hydrogen beyond 2030.
Focus on a strong European competitive position internationally through the IPCEI1

1. Important Projects of Common European Interest
Source: Dutch Government Strategy on Hydrogen; International Hydrogen Strategies (World Energy Council Germany);

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1.2 / Dutch Hydrogen Strategy – Investments and incentives
NOT EXHAUSTIVE

DomainKey measures

Description

Financingandincentives

Offering financial
support at thevarious phases ofthe development
process

Develop a reliable system of Guarantees of Origin (GOs) and certification

Introduce a new and temporary support scheme for operating costs related to the scaling up and cost reduction process for green hydrogen
Facilitate the scaling-up by making use of the existing Climate Budget funds as of 2021, with an annual budget of EUR 35 Mn
Include electrolysis hydrogen production in the SDE++ support scheme1. Blue hydrogen production will be able to compete in the CCS category
Explore the feasibility of a blending obligation of hydrogen in the distribution networks

Infrastructure Steering the
deployment incollaboration withindustrial players

Review the use of the existing gas grid, and determine whether and under which conditions it could be used for hydrogen

R&D

Support hydrogen projects through annual MOOI2 tenders. In 2020, hydrogen projects are eligible to compete for a EUR 17 Mn budget (aprox.
MUSD 20), with a maximum individual subsidy of EUR 4 Mn (aprox. MUSD 4.7)

Offering support
schemes forresearch, scaling up
and rolling out

Coordinate the optimal placement of hydrogen infrastructure through the Main Energy Infrastructure Programme
Focus on infrastructure as key enabler for industry clusters sustainability improvements

Support R&D projects in an industrial environment through the DEI+ program, which covers 25-45% of eligible cost up to EUR 15 Mn per
project (aprox. 17.6 MUSD)
Focus on applied research in collaboration with the business community through, among others, the Netherlands Organization for Applied
Scientific Research (TNO)
Research production and applications of green hydrogen through the Energy Top Sector as part of the various multi-year mission-driven
innovation programs

Skilled labor

1.

N/A

N/A

Support scheme for cost-effective carbon emissions reduction

Source: Dutch Government Strategy on Hydrogen; International Hydrogen Strategies (World Energy Council Germany);

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1.2 / German government agrees on
National Hydrogen Strategy
Description

Overview of key measures

German Government agrees on National
Hydrogen Strategy that aims at providing
a framework for future production andapplication of hydrogen as well as
related innovations and investments

The strategy includes 38 measures that aim at establishinga value chain for the production, distribution, and largescale use of hydrogen

Long-term focus is on green production,
however, the role of other low-carbon
pathways is acknowledged as import tool
for short- to mid-term market acceleration
The strategy aims at laying the foundation
for a functioning hydrogen market until
2023
The government and a National
Hydrogen Council will evaluate andreview the strategy every 3 years

Generation

Infrastructure

Plan supply infrastructure via dedicatedpipelines and existing gas networks

Hydrogenusage

Support usage of hydrogen in various
sectors (e.g., industry, transport, heating)
via dedicated support schemes andregulations, and industry-specificdialogues
Define standards for hydrogen products
to establish international market

Demand for hydrogen in Germany,
TWhPartnerships
90-110
55
2020
1.
2.

Support green hydrogen production via
new support schemes (contracts-fordifference, auctions) and investment
grants2030

Intensify international partnershipprojects to enable imports of greenhydrogen as domestic production (14TWh of in 2030) is expected to be
insufficient for deep decarbonization

Key commitments and targets
investments for domestic
7 bn EUR
hydrogen market ramp-up

investments for hydrogen projects
2 bn EUR
within international partnerships

2%

quota for green hydrogenbased aviation fuels until 2030
to be investigatedInstalled electrolysis capacity targets 1 ,
GW
10
5

2030

2035-402

The strategy mentions a target of 2 GW for electrolyzer but does not specify a concrete time frame or if this is additional to the 5-10 GW targets
Additional 5 GW to be added until 2035 if possible but no later than 2040

Source: Nationale Wasserstroffstrategie (National Hydrogen Strategy), BMWi

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1.2 / Germany's national hydrogen strategy gets continuously
revised in 3-year cyclex

Phase 1: 2020-2023
Objective

Market launch– Decarbonize existing hydrogenproduction and facilitating take up of hydrogenconsumption in new end-uses

Electrolysis capacity
targets, GW

Infrastructure
roadmap

Phase 2: 2023-2030
Scale up – Expand production and end-use to
additional sectors to develop hydrogen as intrinsic
part of an integrated energy system

5

14

2030
Formulate report on recommendations for hydrogen supply through dedicated pipelines as well ashydrogen-readiness of existing gas infrastructure, and buildout of hydrogen gas stations

Renewable hydrogen production, TWh/yr

Beyond 2030
Use hydrogen to establish CO2-neutral economy
by 205010282035-2040

Redesign planning and financing of infrastructure (electricity, heat and gas) to allow for crosscoordination and cost-efficient deployment of energy transition capable energy infrastructure
Create hydrogen refueling station infrastructure

Targeted end-use
sectors

Transport: 3.6 bn EUR in subsidies for vehicles
and 1.1 bn for fuels until 20231
Heating: Support hydrogen fuel cell heating
Industry: Subsidize hydrogen use in chemicals
and steel. 55 TWh/yr consumption (2020)

Selected support
schemes

Subsidies from energy- and climate fonds
Exclude green hydrogen from EEG-levy

Transport: 2% green hydrogen in aviation fuelHeating: Further promote hydrogen use
Industry: >65TWh/yr consumption

Grant investment support for electrolyzers to support industry shift from grey to green hydrogen
Establish pilot project where generators receive difference between CO2 abatement costs for
producing green hydrogen (fixed CO2 price) and the CO2 price in the EU emission trading system toguarantee generators stable returns4
1.

Including electric vehicles and biofuels

Source: Nationale Wasserstroffstrategie (National Hydrogen Strategy), BMWi

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1.2 / Key actions in for the creation of the hydrogen industrial
ecosystem in Germany – Enabling environment
NOT EXHAUSTIVE

DomainKey measures

Description

Vision andtargets

Ramping up thegreen hydrogenmarket and using it
to enable
Germany's energy
transition

Create a global impact on GHG reduction by developing a market for green hydrogen and increase global cooperation
Enable hydrogen as a competitive source of energy by driving technological development and advancing cost degression, establish greenhydrogen in industrial processes and as a fuel source for seafaring and aviation
Establish a domestic market that incentivizes hydrogen use and develop hydrogen infrastructure to take advantage of synergies with theenergy transition in Germany
Improve the hydrogen framework and R&D continuously

Regulation
Promoting theand licensing growth of the entire
value chain

Implement the continuously revised hydrogen strategy
Regulatory unbundling of electrolyzers and power and gas grid operators
Develop and improve framework conditions for pairing offshore wind and electrolyzers including the designation of dedicated land/areas andthe possibility of additional tenders
Start a European dialogue between regulators and the industry on decarbonization strategies, including hydrogen as an option

Coordination Preceding
andInternational
partnerships Standards andpromote industry
alliances

Develop joint European regulations and industry standards to establish cross-border hydrogen market and support investments in hydrogentechnologies via „Important Project of Common European Interest (IPCEI)“
Integrate hydrogen in international energy partnerships to jointly develop hydrogen technologies and thereby guarantee that Germany’s future
demand for hydrogen can be met via imports
Advance standardization of hydrogen systems in mobility

Source: Nationale Wasserstroffstrategie (National Hydrogen Strategy), BMWi

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1.2 / Key actions in for the creation of the hydrogen industrial
ecosystem in Germany – Investments and incentives
NOT EXHAUSTIVE

DomainKey measures

Description

Financingandincentives

Establishing greenhydrogen as acompetitive sourceof energy

Subsidies from energy- and climate fonds
Exclude green hydrogen from EEG-levy

Infrastructure Developing a
reliable and secure
infrastructure

Grant investment support for electrolyzers to support industry shift from grey to green hydrogen
Establish pilot project where generators receive difference between CO2 abatement costs for producing green hydrogen (fixed CO2 price) andthe CO2 price in the EU emission trading system to guarantee generators stable returns4
Formulate report on recommendations for hydrogen supply through dedicated pipelines as well as hydrogen-readiness of existing gas
infrastructure, and buildout of hydrogen gas stations
Redesign planning and financing of infrastructure (electricity, heat and gas) to allow for cross-coordination and cost-efficient deployment ofenergy transition capable energy infrastructure
Create hydrogen refueling station infrastructure

R&D

Skilled labor

Promoting researchand innovation inhydrogentechnologies

Strategically bundle multiple research initiatives towards hydrogen and investigate measures to facilitate market entries for new hydrogentechnologies

Training of safetyand development
specialists

Find new ways of collaboration between research and education to maintain and expand qualified workforce

Provide EUR 25 million funding for hydrogen research in aviation and shipping respectively over the 2020-2024 period

Support and promote training and development of workforce in hydrogen, especially in production, processing and maintenanceSource: Nationale Wasserstroffstrategie (National Hydrogen Strategy), BMWi

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Chapter 2: Business case for domestic Hydrogen production andend use application
Chapter content
description▪ Business cases for domestic production of green hydrogen through green renewables,
including costs of generation and hydrogen production▪ Business case for prioritized end use applications1 including: heavy transport, urban
buses, mining trucks (CAEX), natural gas blending, industry heating, green ammonia
production and replacement of grey hydrogen▪ Domestic demand projections for green hydrogen in Chile by end use application▪ Identify enabling factors with the greatest influence over the business case

Activities
included

▪
▪
▪
▪

1.

Activity 2.1
Activity 2.2
Activity 2.3
Activity 2.4

End use applications prioritized based on market potential and impact on strategic roadmap and do not represent an exhaustive list. Some end use applications such as ´energy storage´ were included in the original scope of work but
deprioritized in favor of replacement of grey hydrogen with green hydrogen, an end use application with the potential to reach economic break even in the short term.

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2.1/ To model thepotential of Green
Hydrogen in Chile,
we need to optimize
3 factors of
production costs

Generation cost

Electrolyzer
utilization

Transmission /distribution

Generation location

RES blending

H2 production location

Capacity Factor
sequencing

Storage technology

Transmission costs
Transportation costs

Generation technology(wind, PV, Bifacial and
CSP)

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2.1/ In the three macro-zones considered, LCOE costs in the northern andsouthern zones can reach as low as ~19 USD / MWh and ~21 USD / MWhrespectively by 2025
Levelized cost of energy1 for competitive zones, USD/MWh

Capacity factors by region2, %40
Northern
Production
Zone

35

Competitive zones

Uncompetitive zones

Atacama PV

34%

Coquimbo Wind

Calama PV

33%

Taltal Wind

Taltal PV

35%

Calama Wind

23-25%

Chiloe Wind

30
25
20

South

15

Central

10

North

5
0
2020
1.
2.

25

30

35

40

45

2050

CentralProduction
Zone

Central PV

Biobio Wind
Coquimbo WindSouthern
Production
Zone

Magallanes
wind56-59%

Bahía Inútil

Offshore windCompetitiveness still
being assessed

Based on 6% WACC, does not include transmission costs
Capacity Factors for Tier 1 sites

Source: McKinsey Hydrogen Cost Model

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2.1/ Chile´s unparalleled renewable resources in the Atacama and Patagonia
makes it the lowest cost place to produce Green Hydrogen in the world
Comparison of production costs 2030
Production cost curve for hydrogen by region,

Generation and Electrolyzer costs of LCOH
USD / kg H2

Generation and Electrolyzer costs of LCOH, USD / kg H2

2,6

3,0
2,2

2,5

2,1

1,8

2.0

1,7

2,0
1,4
1,5

1.7

1,4

Central: selectdomestic application

1.2
1.3
1,0

1,1
1.1

1.0

1.0
0.9

South: export

0.8

0,5

0
2020

25

30

35

40

Source: McKinsey model, Minister of Energy capacity factor data and PV / Solar profiles

45

2050

North: export +miningapplications

1.3

Chile

Middle Australia China
East

EuropeUS

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2.1/ Green hydrogen production cost is projected to drop by 50%
within the next 10 years driven by a decrease in electrolyzer costs
Cost reduction levers for hydrogen electrolysis connected to dedicated solar PV in Taltal, Chile

USD/kg H2
2025

2.0

Power generation

0.2

Electrolyzer CAPEX

0.4

Power generation costs decrease by 1/3, driven by a steep decline insolar PV CAPEX from ~850 $/kW to ~400 $/kW. Solar PV LCOE in Taltal,
the most promising area in the North, decreases from 19 to 13 USD/MWh
Electrolyzer CAPEX costs decrease sharply by 55% in 10 years. This isdue to a combination of factors, including: larger global production scale,automation in manufacturing, larger individual system size classes (e.g.,going from 2-20 MW today to >100 MW per unit), decreasing BOS1 costs,

0Electrolyzer efficiency increases from 68 to 71% due to technicaladvancements, such as better catalysts

Other

0.2

Other costs go down, especially electrolyzer O&M costs, following a
reduction in the cost of parts and learning to operate systems

2035

1.1

Electrolyzer efficiency

-46%
1.

Balance of system

Source: McKinsey Hydrogen Cost Model

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2.1/ Different options for solar technology range from fundamental
changes to incremental improvements to the system
Details to follow

Fundamental shifts on how the system works

Incremental improvements to PV technology
Manufacturing scale

PV vs CSP1
Single vs multi-crystalline Silicon wafers

Bifacial modules

PV 1-axis vs 2-axes tracking

Perovskite

Perovskite solar cells

Battery storage
Professionalization of the industry
Compared to PV technology, CSP represents a fundamental shift on how the system works, leading to significant differences in
LCOE. By contrast, bifacial modules provide incremental improvements to PV technology, with a marginal LCOE change that is
highly dependent on specific local characteristics, such as albedo (ground material) and labor cost (more complex engineering
work is required for project planning and installation)
1.

Concentrated Solar Power

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2.2-2.3/ Economic breakeven will start with domestic applications; exports of green
ammonia will ramp up in the second half of this decade, whereas exportingNot exhaustive Preliminaryhydrogen and synfuels will happen after 2030
Prioritization matrix for main hydrogen applications2

1 GW Electrolyzer Capacity = ~0,1 Mton

5,00 – Mton hydrogen equivalent

Uncertainty vs Break-even – size of the bubble represents total potential market for 2030
Domestic

Uncertainty on technologicalcost evolutionHighwave 3

Light road transport FCEV

Small passenger cars FCEV

Ammonia Small maritime transport

Wave 20,5Wave 1

22 – 343

Mining Trucks
FCEVLong distance
0,4buses FCEV
Heavy Duty Trucks
long distanceHydrogen exports

Ammonia for domestic
shipping

SUVs
0,1

0,8
Medium Duty
1,0 Truck long
distance0,1
Gas blending
with H20,2

Low

Grey H2 replacement
Oil Refinery
0,1

11 - 233

Ammonia exports

0,2Power generation and buffering
applications most relevant beyond
2035

Ammonia
Domestic

2025

International1

2030



Commercialization of hydrogen
applications will take place in threewaves:— Wave I: Domestic ramp up andexport preparation— Wave II: Capitalization on export
markets— Wave III: Leverage scale to expand
Additional applications (not pictured)
can become relevant once thesynergies from large scale exports arecaptured
Key longer term applications (synfueland methanol) will bring additional
market opportunities in 2035+
Industrial head applications considered,
but they are small

2035

Estimated breakeven
1. Considers domestic demand of ammonia and ammonia used for Fertilizers | 2. Does not consider CO2 Tax | 3: Considers main addressable markets (Low range does not consider China)
Source: Team Analysis; Hydrogen Council report; INE Chile; OCDE

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2.2-2.3 / Market size of the hydrogen industry in Chile
Chilean Hydrogen and derivative market projections: 2025-2050
B USD
Domestic Market
International Market

97

However, capturing
this opportunity
requires theappropriate ramp
up of applications:

24

16

Wave I: Domestic
ramp up and export
preparation

33+12-15% p.a.

28
23

16

8

5
5
1

2

3

11

19

Wave II: Capitalize
on export markets

2025

2030

2035

2040

2045

2050

Required GW
electrolyzer
capacity

3-5

25

90

130

155

190

Required GW
RES capacity

5-8

40

145

200

250

300

Wave III: Leverage
scale to expand
Detailed next

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2.2-2.3 / Domestic application anticipation would be focused primarilyon grey H2 replacements in oil refinery, grey NH3 replacementin mining / fertilizers and glass blending
Preliminary

Application
1

Current H2
replacement
Oil refinery

2

Current NH3
replacement Mining +fertilizers

3

Mining haul trucks

Total Potential
Market size1 USD B 2050
0.2Electrolyzer
capacityrequired (GW)

Estimated breakeven with National
H2 Strategy

2020

2025

Potential break-even
without National H2strategy2030

Potential ramp-up
to achieve 100%

2035

2040

252

402

1,8

0.5

2,2

1.6

9,3
Pilots starting (+30 trucks)

4

Heavy duty trucks

5

Coaches / buses6

Gas Blending ( up to
20% total residential
use)

2,0

0.8

0.3

11

Pilots starting (+50 trucks)

4,5

Pilots starting

1,8~6 USD B

GW Electrolyzer:(w/ National H2 Strategy)

310

1. Consider the transition to hydrogen of 100% of the energy demand of each application
2. Including other domestic applications including: airlines, shipping and large passenger cars
Source: Team analysis; INE, ENAP; DPO

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2.2-2.3 / Domestic could account for +3M ton of total hydrogen
demand by 2050
Hydrogen uptake for different domestic applications

Hydrogen uptake for different domestic applications

Mtons of hydrogen equivalent% of total consumption

Oil refinery

Gas blending

Mining trucks

Oil refinery

Gas blending

Mining trucks

Ammonia

Buses

TrucksAmmonia

Buses

Trucks

3,2
3,0
2,7
0.2
0,2

2,0

0.2
0.2
0.4

100

0.2
0.2
0.4

75

1.0

50

0.4

0.8

0.9

0.6
25

0,5

0.8

0.3
2025

30

35

1.1

1.1

1.2

40

45

2050

0
2025

30

35

40

45

2050

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2.4/ Factors which produce the largest differences between the resultsof the business cases

1 Financing and incentives

2 Regulation and licensing / permits

Sources of funding to facilitate the launch of
feasibility studies, pilots and scaled projects

Long term regulatory structure to diminish uncertainty
and minimizes barriers to entry / doing business

Incentives structured to support supply and demand
development for scaled projects

Acceleration of licensing and permitting processes

4 Infrastructure

5 Research & Development

6

Necessary infrastructure to support project
development (transmission, ports, refueling stations
etc…)

Research and development of technologies for the
Chilean context (ex. wind turbines for Patagonian
wind profiles and earthquake resistant ammonia
production)

Ability to attract local talent for construction andproduction

Source: Press research; Hydrogen roadmap for EU, USA; Netherlands, France, Australia, Germany, South Korea; Team analysis

3 Coordination and partnerships
Coordination mechanism to create formalized
partners with domestic and international actors topromote industry growth and domestic andinternational supply chain development

Skilled Labor

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Chapter 3: Business case for Hydrogen exportation
Chapter content
description▪ Demand projections for key export markets of green hydrogen by end use application andgeography (focus on green hydrogen and green ammonia)▪ Competitiveness assessment of Chile in key export markets, including: European Union,
Japan, South Korea, China and the United States▪ Key factors which influence the competitiveness of Chile in these export markets

Activities
included▪ Activity 3.1▪ Activity 3.2

1.

End use applications prioritized based on market potential and impact on strategic roadmap and do not represent an exhaustive list. Some end use applications such as ´energy storage´ were included in the original scope of work but
deprioritized in favor of replacement of grey hydrogen with green hydrogen, an end use application with the potential to reach economic break even in the short term.

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3.1 / Ammonia exports: key potential green ammonia markets for Chile
include China, Japan/South Korea, EU, USA and LATAM
Export opportunity for Chile

Total Ammonia consumption 2030 – Mton / year NH3• Net importers of grey ammonia (+60% of total consumption)• High ambitions for green ammonia transition may require
high levels of imports• Current consumption ofammonia is served bydomestic offer (+95%)• Net importers of grey
ammonia (+25% of
total consumption)• High availability of
renewable resources
may allow to address its
own domestic demand• New carbon taxes may
favor imports of green
ammonia• Potential
attractivenessdue to proximity(+75% Brazil andArgentina)

15

3

69

210

Rest ofthe world
BAU

Total BAU

40

230-290

Potential new
applicationsof ammonia

Total
potencial

3

17
18

18
23
65
• Net importers of grey ammonia (+10% of total consumption)• Potential development of domestic market could diminish import needs

China

European
Union

United States Middle east

India

RussiaSouth
America(exc. Chile)

Japan /South Korea

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3.1 / Hydrogen export: key hydrogen markets for Chile include South
Korea, European Union and the United States
Preliminary

Potential demand for green hydrogen per country
Export opportunity for Chile

Mton H2 / year; Low and high ranges found in strategic roadmaps• Japan’s Energy foresees the
procurement of ~300 Ktons in
2030 and 5-10 Mtons in +2050• S. Korea plans to start importinghydrogen in 2030

• Domestic production capacity
may be sufficient to attend thedemand for green hydrogen,however, accelerated expansion
may require imports

Ambitious scenario• The limited production capacity
in the region may boost imports
specially by countries as
Germany, Netherlands,
Belgium, among others

Base scenario• Even though the country counts
on its own natural resources,
Chilean hydrogen presents an
attractive cost structure able tocompete with the local market

68

63

60

36
27
40
7
2
2030

11
2050

23
2030

20
14

2050

2030

17
23
2050

Source: China renewable energy outlook 2018; Hydrogen roadmap South Korea 2018; Japan Strategy Energy Plan 2018; Roadmap to a US hydrogen Economy; Perspectives on hydrogenfor the APEC region; Hydrogen Council; EU strategic roadmap; The future of Hydrogen IAE;

14

20

2030

2050
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3.1 / Export markets have the potential to ramp up starting 2025,
provided that long term contracts are brokered with international
players
Estimated market size for Chilean exports
USD B

LATAM

USA

Japan/Korea

China

EuropeTotal1

0,4

3

11

16

19

24

GW Electrolyzer

2

15

65

90

110

135

5

5

5

4

1

1

Ammonia
exports

2
0.5
2025

2

0

1

Hydrogenexports

2025

2030

1

1

1

1

1

3

3

2035

2040

2045

2050

1

2
0.5

1

1

3

7

0

1

2

1
2030

1

1

3

2035

11
2
4
1
4

2040

14
2
5
1

19
3
7
2

5

7

2045

2050

1 Total of Ammonia + Hydrogen exports
Source: Team analysis; National hydrogen roadmaps of the respective countries -Total of Ammonia + Hydrogen exports

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3.2 / Factor that will influence Chilean
export competitiveness1

Hydrogen roadmaps and decarbonization
targets of main net importer markets ofgreen hydrogen and derivatives

Chile’s strategic position will depend on the offset
between lower production costs and higher
transpiration costs
Production costs

2

3

Chile’s production and transportation costs
vs potential competitors to serve thosemarkets

Acceleration of export production capacity
development to capture potential market
share

Transportation costs

Potential
competitors
Relatively uncertaintransportation costs could
diminish competitivenessConsiderable lower
production costs make Chile
more competitive

Cost to market
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Chapter 4: hydrogen industry development targets and roadmap
Chapter content
description▪ Hydrogen industry targets for National Green Hydrogen Strategy▪ Roadmap for domestic application development in Chile

Activities
included▪ Activity 4.1

1.

End use applications prioritized based on market potential and impact on strategic roadmap and do not represent an exhaustive list. Some end use applications such as ´energy storage´ were included in the original scope of work but
deprioritized in favor of replacement of grey hydrogen with green hydrogen, an end use application with the potential to reach economic break even in the short term.

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4.1 / We aspire that Chile be among the top 5 producers of green hydrogenworldwide and the top 3 exporters; our target is 5 GW of hydrogen capacity underdevelopment by 2025, 25 GW by 2030

Hydrogen Roadmap

Hydrogen valleys:

Aspiration:

Top

5

Global producers

Top

3

Northern hydrogenvalleyGlobal exporters

Targets: GW of electrolyzer capacity in development

5 GW

25 GW

by 2025

by 2030

Southern hydrogenvalleyMcKinsey & Company

46

4.1 / Capturing this opportunity depends on the short term ramp
up of domestic applications
Proposed sequencing and timing of application ramp up
Wave III: 2035+

Detailed next

Wave II: 2030

Wave I: 2025

Capitalize on export markets

Domestic ramp up and export
preparation

25 GWs3-51 GWs

Sequenceof steps

Kick start hydrogen industry with large
domestic applications with earliest
economic breakeven: Grey H2 replacement in Oil
Refinery application
 Grey ammonia replacement
 Gas blending Pilots for mining Haul Trucks andHeavy Duty Trucks

Leverage domestic base toaggressively scale into a relevant
player in the most attractive export
markets:

First, Green Ammonia export market(principally: Latam, Europe, US andChina)
Second, Green Hydrogen export
market (principally: Europe, Japan /South Korea, maybe US and China)

Leverage scale to expand
90+ GWs
Synergies and economies of scale
enable expansion into additionaldomestic applications
Scale up export to other markets tobecome a significant supplier of worldenergy consumption
Capture opportunities in futuretechnologies and applications of Green
Hydrogen and derivatives as they
become economical:

 Synfuel applications(including Jetfuel) Ammonia for shipping

Build knowledge, scale, andinfrastructure to move into export
opportunities (primarily Green Ammonia)
1.

3 GW for domestic applications and 2 GW additional based on accelerated export opportunities

Source: McKinsey analysis

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4.1 / Optimal sequence and ramp up timeline of applications,corresponding infrastructure and skilled jobs required
Pilot and infrastructure launch

Key milestone for the Chilean hydrogen strategy

Application and infrastructure ramp up

Preparation: Today - 2025
Today

2025

Electrolyzer
Production capacity (GW)
H2 replac.
(oil refinery)

3-5

2035

2040

25

90

130

Substitutionof H2

Substitutions ofexports

Mining Haul
trucks

Initial bigger
scale pilots

Heavy duty
trucks

Initial bigger
scale pilots

Scale up and expansion : 2030 - onwards

2030

Substitution ofdomestic uses

NH3
replacement

Application uptake

Capitalize exports: 2025 - 2030

Substitution ofgrey NH3+80% fleet
renovation

Domestic+80% fleet
renovation+80% fleet
renovation

Initial bigger
scale pilots

Coaches /Buses
Gas
Blending
NH3
exports+15% blending

Bilateral partnershipagreements+80% potential
captured

Initial exports

Exports
H2
exports
ImpactKilled jobs required– Construction andindustry operation

Bilateral partnershipagreements

30 k

1. Includes investment in energy generation, electrolyzer, transmission and compression, transportation, liquefaction and refueling facilities
Source: DPO; TCO Model; team Analysis+80% potential
captured

Initial exports

145 k+400 k+400 kMcKinsey & Company

48

Chapter 5: relevant stakeholders for the hydrogen industry
Chapter content
description▪ Map of relevant stakeholders (private and public, domestic and international) who could
have an important role in the development of a Chilean hydrogen ecosystem▪ Identify enabling factors which could facilitate the engagement of these stakeholder
groups in Chile´s developing hydrogen ecosystem

Activities
included

▪
▪
▪
▪

1.

Activity 5.1
Activity 5.2
Activity 5.3
Activity 5.4

End use applications prioritized based on market potential and impact on strategic roadmap and do not represent an exhaustive list. Some end use applications such as ´energy storage´ were included in the original scope of work but
deprioritized in favor of replacement of grey hydrogen with green hydrogen, an end use application with the potential to reach economic break even in the short term.

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5.1 & 5.2/ The development of the Chilean hydrogenecosystem will depend on 6 key groups ofstakeholders
Key considerations

Off-taker group
Stakeholders that will diminish the risks ofthe projects guaranteeing volume demand;
could be also co-investors
1

Ecosystem builders
Responsible for creating the enabling
conditions for the hydrogen market

Hydrogen production
Responsible for technology andinfrastructure development for hydrogenproduction, transportation and storage

Financing investors

6

2

5

3
4

Funds or banks willing to invest in theenergy market in Latin America

Demand technology developers
Technology developers for different hydrogen
applications – demand side (e.g.
transportation)

Electricity generation (provider ordeveloper)
Current or new energy generation players that will
dedicate resources to hydrogen projects

 The coordinated actions ofdifferent stakeholder groups
will allow to accelerate thegrowth of the hydrogenmarket by:— Facilitating the creation of
the enabling environment
for the market to operate— Rapidly acquiring andincorporating thehydrogen technology
development to boost
demand— Coordinating financing,energy generation andproduction promoting thedevelopment of new
projects

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5.1 & 5.2/ Stakeholder groups (1/3)
Not exhaustive
XX Possible champions

Group
Potential
off-takers

1

Financingand investors
2

Role(s)Organizations

Off-takers of green hydrogen production for oil refinery

ENAP; Linde

Off-takers of green hydrogen for mining trucks

Codelco, BHP, Anglo-American, Teck, Antofagasta
Minerals, SQM, Barrick gold

Off-takers of green hydrogen for inter-urban buses

Turbus, Pullman Bus

Off-takers of green ammonia for explosives

ENAEX

Off-takers of green hydrogen for gas blending

Metrogas, GasValpo, GasSur

Off-takers of green hydrogen and green ammonia exports

Yara, Mosaic; Linde; ThyssenKrupp, APM Maersk,
Air Liquid (Airgas), Casale

Funding for consortiums projects - international cooperation agencies

IDB, World Bank, Development Bank of Japan, Green
Climate Fund, KfW, CAF, CIF

Funding for consortiums projects – Institutional investors

Pension funds, wealth management, etc.

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5.1 & 5.2/ Stakeholder groups (2/3)
Not exhaustive

Group

Technology
Financingdevelopment
and investors 3

Energygeneration

4

Hydrogenproduction

5

Role(s)Organizations

Production of FCEVs and hydrogen technology

Hyunday motor company, Toyota, BMW; LIEBHERR;
Alset, hydrogenics, Audi, Faurencia, Daimler

Production of hydrogen driven mining truck vehicles

Ballard; Caterpillar; Komatsu

Development of hydrogen aircrafts

Boeing, GE aviation, Airbus, Safran

Development of ammonia ships & vessels

Maersk, Ultramar

Renewable energy generation

Enel, Colbún, AES Gener; Engie, Repsol, EDPR,
Statkraft, RWE, Orsted

Wind energy generation infrastructure

Vestas, Orsted, Nordex, Siemens, GE

Solar energy generation infrastructure

JinkoSolar, SunPower, Hanwha Q Cells

Infrastructure required for energy transmission

Transelec

Production of hydrogen technology

Siemens, Cummins, Nel Hydrogen, Hydrogenics,
ITM Power

Hydrogen production, transport and storage

Total, COPEC group, Repsol, Engie, Air liquid, BP,
Nel Hydrogen, Shell, Vopak, ITM power

Production of green ammonia and blue fertilizers

Yara, Mosaic, Air Liquid (Airgas), BASF

Production of blue methanol

Methanex

XX Possible champions

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5.1 & 5.2/ Stakeholder groups (3/3)
Not exhaustiveGroup
Ecosystem
builder

6

Role(s)Organizations

Coordination and orchestration of different actors - public and private sector
Supporting the design of the regulatory framework

Ministry of Energy

Facilitating the establishment of international cooperation agreements

Ministry of Foreign Affairs; Embassies at target countries
including: Japan, South Korea, China, EU and USA

Development of funding lines for initial pilots and feasibility studies via CORFO
and promoting the country as an investment destination

Ministry of Economy, Development and Tourism

Development of infrastructure studies and coordination with privateorganizations for infrastructure development

Ministry of public works

Promotion of the adoption of green ammonia and low-carbon fertilizers
produced with hydrogen

Ministry of agriculture

Establishment of environmental requirements and processes for thedevelopment of hydrogen projects

Ministry of environment

Promoting and coordinating together with universities the research onhydrogen and derivatives

Ministry of Education, Ministry of Science, Technology,
Knowledge and Innovation

Design the permits for the operation of hydrogen pilots and coordinate thework with companies

Ministry of mining, Ministry of transportation

Promotion of research and education on green hydrogenU. de Chile, PUC, U. de Concepción, U. de Magallanes, U. de
Antofagasta, UTFSMInternational research and development partners

Fraunhofer, Hydrogen Energy Research Center

Representation of the private sector and coordination with public entities

Hydrogen council, H2 Chile, Hydrogen Europe, Ammonia
Energy Association

XX Possible champions

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5.3/ Conditions which favor the participation of new actors andpotential impacts

Conditions which favor new actor participation

Potential impact of new actor participation

Aspiration, roadmap and strategic priorities

Development of consortiums (supply & demand)

Transparent aspiration and roadmap to show government support
for green hydrogen industry development, defined strategic
priorities to enable companies to identify and capitalize on
strategically aligned opportunities

Consortium launch for domestic and international applications(and most likely by both domestic and international players),
providing both supply, demand and financing requirements forhydrogen industry launch

Regulation & licensing / permitting

Attraction of international financing

Establishing stable regulatory frameworks which support longterm investment and development, are easy to understand(particularly for international players) and have a clear point ofcontact to field questions and doubts

The establishment of consortiums (and in particular, theinvolvement of international actors) will facilitate the attraction ofinternational financers (ex. national banks may become moreinterested if national companies are taking part in the consortium
or if consortium actors have pre-existing relationships withinternational financers)

Effective coordination

Reduced costs through synergies

Creating effective communication and coordination through theestablishment of specific task forces (responsible for specifictargets) and governance structures (responsible for the overall
advancement of the roadmap)

Increased coordination and partnership building will create cost
reducing synergies, particularly in infrastructure, which will
accelerate green hydrogen industry development

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5.4/ Workshop 1: Private
ActorsWorkshop for private actors

Objectives

Agenda

Review Chile´s National Green Hydrogen Strategy andclarify questions

1

Introduction

10:00 – 10:05

Discuss the principal opportunities, barriers anddemand offtake sources for the establishment of
successful projects in Chile

2

Review Chile´s National Green
Hydrogen Strategy

10:05 – 10:35

3

Q&A on national strategy

10:35 – 11:00

4

Small group breakout: building a
consortium

11:00 – 11:40

5

What´s next?

11:40 – 12:00

Prioritize these opportunities, barriers and demand
offtake sources for further development by the Ministryof Energy
Gain visibility on the immediate next steps for thehydrogen industry in Chile

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5.4/ Workshop 1: National Strategy for
Hydrogen Breakout group discussion

Breakout group assignments

Discussion questions

Consortium A: Ammonia export H2 Chile, Generadoras, Engie, AME, Mitsui, Sumitomo, GasValpo, RWE,
Austrian Solar, Siemens, Air Products
 Facilitator: Xavier Costantini; Note taker: Daniela Hermosilla Do you believe in the hydrogen
opportunity for your consortium(in what timeline?) What are the barriers that standin the way? How can they beovercome?
 What is required to securedemand offtake for yourconsortium?

Consortium B: Mining sector
 UTFSM, H2 Chile, Cummins, CAP, COPEC, Transelec, Pacific Hydro, TCIGECOMP, ENAEX
 Facilitator: Clemens Muller-Falcke; Note taker: María José Lambert
Consortium C: Domestic applications (natural gas, logistics, oil refinery) PUC, ACERA, Walmart, Metrogas, COPEC, Lipigas, GasValpo, ENAP,
CCU
 Facilitator: Sarah Toupal; Note taker: Benjamín Maluenda

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Workshop 2: Public Actors

Objectives

AgendaIntroduce Chile´s National Green Hydrogen Strategy
and clarify questions

1

Introduction

9:00 – 9:10

Discuss how hydrogen can help support the goals ofeach government area and what challenges exist to thesuccessful implementation of the strategy

2

Review Chile´s National Green
Hydrogen Strategy

9:10 – 9:40

3

Q&A on national strategy

9:40 – 10:20

4

Small group breakout:
opportunities and barriers

10:20 – 10:50

5

What´s next?

10:50 – 11:00

Gain visibility on the immediate next steps for thehydrogen industry in Chile

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Breakout group discussion

Dynamic

Discussion questions

Divide into small groups

What opportunities doeshydrogen offer to your area /institution (how can hydrogensupport your goals)?

Break out (25 mins)
 Discuss and answer questions, supported by facilitators
Break out wrap up (5 mins)
 Facilitators present results from each breakout group

In thinking about your area, what
are the principal challenges you
see in launching the hydrogen
industry in Chile?

McKinsey & Company

58Proposed template to fill with your teams: articulate the opportunities andchallenges you see for your department across our eight domains for work
Thinking beyond the high level actions outlined in the national strategy…
Name:

Department:

1 Strategy and targets

2 Regulation and licensing / permits

3 Coordination and partnerships

4 Value chain

5 Financing andincentives

6 Infrastructure

7 Research & Development

8 Skilled Labor

McKinsey & Company

59Chapter 6: government role in hydrogen industry development
Chapter content
description▪ Domains of work required to support and accelerate the development of the hydrogen
industry in Chile (both demand and supply) and definition of key design principals▪ List of actions taken by international governments to implement the domain of work
according to the key design principal▪ Recommendation of immediate next steps for government action by domain to accelerateand successful implement the hydrogen industry roadmap

Activities
included

▪
▪
▪
▪

1.

Activity 6.1
Activity 6.2
Activity 6.3
Activity 6.4

End use applications prioritized based on market potential and impact on strategic roadmap and do not represent an exhaustive list. Some end use applications such as ´energy storage´ were included in the original scope of work but
deprioritized in favor of replacement of grey hydrogen with green hydrogen, an end use application with the potential to reach economic break even in the short term.

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6.1-6.4/ The state will support the development of the industry
taking action in 8 domains
Not exhaustive

Enabling environment

1 Strategy and targets

2 Regulation and licensing / permits

3 Coordination and partnerships

4 Value chain

Establish a clear vision withtargets, strategy, and action
plan.

Establish a long term regulatory structure which
diminishes uncertainty and minimizes barriers
to entry / doing businessCommunicate the strategy andplay an active role in mobilizing
private and public actors in Chileand beyond.

Accelerates and streamline licensing andpermitting processes

Coordinate and establish formal
partnerships with domestic andinternational actors to promote industry
growth and domestic and international
supply chain development

Maximize value creation andeconomic development inChile identifying where theopportunities are fordomestic industry along thevalue chain and putting theright enablers in place

5 Financing andincentives

6 Infrastructure

7 Research & Development

8 Skilled Labor

Provide sources of funding
directly and facilitate access to
inexpensive capital

Promote infrastructure developments via PPPs
and collaboration among actors to capture
infrastructure synergies

Promote research projects on hydrogentechnologies both nationally and withinternational partners

Develop local talent andskills required for H2
production, refueling,storage, etc.

Deployment incentives(production and demand)
Source: Press research; Hydrogen roadmap for EU, USA; Netherlands, France, Australia, Germany, South Korea; Team analysis

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6.1-6.4/ Enabling actions (1/4)
Not exhaustive
Not exhaustive

DomainKey design principles

Examples of actions seen in other places

1 Vision & targets

Set clear ambition and direction

Define national aspiration backed by strategy, targets and action plan, including priorities forindustry development and the role of the government and industry actors

Create strategy, clear targets and an action
plan to support ambition
Actively mobilize public and private actors
to realize defined strategy (in Chile aninternationally)

2 Regulation

Understand the full economic and social impact of the Hydrogen strategy (both supply anddemand side)

Communicate the benefits of the plan to thesociety in general

Create the socialization and engagement strategy for the society in general

Diminish the uncertainty to invest in new
projects

Formulate the regulatory framework and protocols for safe production, storage and transportationof hydrogen

Facilitate market access

Establish the rules for grid integration and remuneration for energy production and gridstabilization

Establish safety standards

Licenses /permits

Mobilize public and private actors to capture strategic opportunities aligned with the aspiration (ex.
developing off taker markets, facilitating international financing etc…)

Lay down environmental requirements

Create a certification scheme or guarantee of origin to recognize greener supply chains that use
green hydrogen

Establish clear requirements

Establish clear and transparent rules and processes for license granting for H2 projects (plants,
refueling stations, storage, etc.)

Design transparent and fast processes
Reduce bureaucracy

Design a streamlined and transparent application process with clear steps and one only central
point of contact
Facilitate licenses to access to water sources

Source: Press research; Hydrogen roadmap for EU, USA; Netherlands, France, Australia, Germany, South Korea; Team analysis

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6.1-6.4/ Enabling actions (2/4)
Not exhaustive
Not exhaustive

DomainKey design principles

Examples of actions seen in other places

3 Coordination
with local actors

Orchestrate the efforts of different actors

Create a task force to lead the implementation of the strategy and the orchestration with thedifferent sectors

Capture potential synergies between
actions

Balance H2 supply and demand growthPartnerships
with technology
providers andinvestors

Establish partnerships with equipment
providers to attract and incorporate newtechnologies

Coordinate the procurement activities of industry actors to promote bulk purchases of different
technologies (e.g. buses, HDT)
Establish partnership with PV / Wind energy developers and electrolyzer producers to acquire
equipment through bulk / long term contracts, including the attraction of production or assembly lines
in Chile
Establish consortiums with national and international ammonia and fertilizers producers to attract
investments (e.g. mosaic, yara)
Establish partnerships with technology producers (e.g. hyundai, caterpillar) to support thetechnology development and attract early pilots to the country

Country to country
partnerships
4 Value chain
development

Facilitate market access for exports /imports

Establish free trade agreements and country-to-country collaboration partnerships to facilitate
imports / exports of technology and products

Identify strategic opportunities for economic
development in the value chain (upstream
and downstream)

Map green hydrogen value chain activities, both upstream and downstream, prioritizing
opportunities based on attractiveness (e.g. size and value-added) and fit with local
capabilities and advantages

Create mechanisms which support local
value chain development

Develop a “Zona de franca”: North & South to attract manufacturing investment anddevelop domestically value adding activities of the supply chain

Source: Press research; Hydrogen roadmap for EU, USA; Netherlands, France, Australia, Germany, South Korea; Team analysis

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6.1-6.4/ Enabling actions (3/4)
Not exhaustive
Not exhaustive

DomainKey design principles

Examples of actions seen in other places

5 Financing

Provide cheap financing for early proof-ofconcepts and pilots to accelerate industry
growth without creating industry
dependence on government support

Coordinate actors from the financial sectors to establish investment lines for the development of
the hydrogen ecosystem

Attract projects and investments with highscale-up potential and secure long term
contracts (potential lock-ins)

Create financing lines for the initial construction of green ammonia and blue urea factories

Protect private investor rights

Provide financial support for initial feasibility studies with commitment for further scale-up without
government financing
Fund pilot projects to test technologies in key applications (mining, transport, H2 replacement,gas blending, etc.) with potential further development without government funding
Establish financing lines for fleet renovation (e.g. buses, HDT) with FCEV and/or for shared
refueling station at key hubs
Advocate for regulation which reduces risks for the deployment of capital for green hydrogenprojects in Chile

Incentives

Support initial investments in sectors withhigher potential of long-term socioeconomic gains
Apply the most efficient tools to anticipate
the industry development without creating
industry dependence on government
supportPermit hydrogen producers to use the grid for transmission at marginal costs (not full cost)
Create carbon bonds for green energy producers and carbon capture in urea production
Create a Carbon tax per ton of CO2 for transport applications
Establish royalties abatements for mining companies to incentive investment in FCEV (haul trucks
and HDT) – for a limited period of time
Import duty on grey ammonia and derivatives
Increase subsidies for green fertilizers in the market
Establish emissions standards for vehicles and incentives for FCEVs

Source: Press research; Hydrogen roadmap for EU, USA; Netherlands, France, Australia, Germany, South Korea; Team analysis

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6.1-6.4/ Enabling actions (4/4)
Not exhaustive
Not exhaustive

DomainKey design principles

Examples of actions seen in other places

6 Infrastructure

Facilitate infrastructure development toenable hydrogen / derivative supply anddemandEstablish protocols and rules for repurposing of existing infrastructure (ports, pipelines, etc.)

Capture synergies in infrastructuredevelopment
Leverage infrastructure already in place

Develop pipeline network for hydrogen and ammonia transport (from production to utilization sites)
Develop port infrastructure and road transportation routes via PPPs

Build transmission line infrastructure at scale
Facilitate the installation of refueling stations at key hubs (e.g. bus terminals, ports, etc.)
Reinforce the Infrastructure of key cities / regions to make them more attractive for skilled people

7 Research &development

8 Skilled Labor

Enable rapid technology development,
transfer and adoption

Create a research center for green hydrogen that promotes and coordinate research efforts
between among bodies and companies

Partner with other governments to conduct
joint R&D on key topics for Chilean H2development

Create lines of funding for research (e.g. Fondecyt) on hydrogen related issues at universities
and R&D centers of companies

Prepare sound technical experts for theindustry

Promote programs and courses on hydrogen related topics in universities and technical centers

Give job opportunities to disadvantage
communities

Develop research projects together with international research centers / universities on key
issues for the Chilean hydrogen economy

Support worker training and educational programs in hydrogen production centers, refuelingstations, storage points, among others

Promote gender equality

Source: Press research; Hydrogen roadmap for EU, USA; Netherlands, France, Australia, Germany, South Korea; Team analysis

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