Enel Green Power Chile and Highly Innovative Fuels (HIF) have secured financial support for the Faro del Sur green hydrogen project in Chile.
The duo have been awarded close to $16.9m though the ‘First Call for Green Hydrogen Project Funding in Chile’, organised by the country’s Production Development Corporation (Corfo).
Enel said the purpose of the funding 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, it added.
The project is expected to produce 25,000 tonnes of green hydrogen a year, through the generation of wind power and the installation of electrolysers with a capacity of approximately 240MW.
EGP Chile business development manager Fernando Meza said: “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.”
HIF Global chief executive Clara Bowman said: “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.”
The Corfo fund awarded a total of $50m and 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 10MW.
Additionally, the commissioning of the projects must not take place later than 31 December 2025.