Green Hydrogen Bahía Quintero project achieves Memorandum of Understanding with companies in the Valparaíso region for 70% of its initial production

13 December 2021

• In this way, the project achieves a significant advance towards its objective of generating a cleaner and more sustainable ecosystem around this fuel

Several companies based in the Valparaíso Region, including Enex, Melón, Terminal Pacífico Sur (TPS) and Puerto Ventanas each signed a Memorandum of Understanding (MOU) through which they formalised their interest in receiving hydrogen produced by the future Green Hydrogen Bahía Quintero (HVBQ) project, which jointly boosts GNL Quintero, Acciona Energía and Enagás.

Quintero Bay, Chile

The signatory companies hope to gradually use hydrogen in their production processes and services and/or incorporate it into their product offerings in order to reduce their carbon footprint and, at the same time, generate a positive impact on air quality in the region, especially in Quintero Bay. As such, the HVBQ project will enable the use of this clean energy in multiple industries established in the country, such as mining, cement, port and transport.

Alfonso Salinas, the representative of the companies behind the HVBQ project and GNL Quintero’s Sustainable Development Manager, highlighted that thanks to the interest shown by several companies in the region, we have completed understanding agreements for over 70% of the initial production, achieving significant progress in the creation of the first green hydrogen ecosystem in Latin America, while at the same time making progress in the environmental recovery of Quintero and Puchuncaví”.

Salinas added that “naturally, these are pioneering and visionary companies. However, the industry's conversion to green hydrogen is a major challenge, which requires a joint effort between the private sector and state institutions”.

Meanwhile, on behalf of Puerto Ventanas, Luis Fuentes, Sustainability Manager, said that “at Puerto Ventanas we have joined this initiative enthusiastically, which will allow us to develop projects for the electrification of port machinery through fuel cells powered by green hydrogen”.

On behalf of Enex, Shell’s licensee in Chile, Pablo Caulier, assistant manager of New-E, commented that “we are part of the global energy transition towards decarbonisation, which is why we are moving forward along the path of new energies and H2V, which offer enormous potential for our country. Furthermore, thanks to the extensive experience we have in fuel distribution, we can be a contribution to the value chain of green hydrogen and its derivatives.”

Moreover, Laura Chiuminatto, assistant Manager of Sustainability of Terminal Pacífico Sur (TPS), said that “within our sustainability strategy there are five pillars, and one of them is our commitment to caring for the planet; thus, we are at a stage of analysing all possible alternatives to move forward in the process of decarbonisation, especially those projects that have a significant innovation factor, so we are very happy with this initiative”.

Finally, on behalf of Melón, Iván Marinado, vice-president of Negocios Melón, indicated that “the use of green hydrogen in our processes is one more step in our commitment to the sustainability of our operations, in addition to co-processing, the use of renewable energies, electromobility and many others that demonstrate our constant concern for the care of the environment”.

The goal of the Quintero Bay Green Hydrogen project is to offer an alternative source of energy that is clean and sustainable, while contributing to the decarbonisation of Chile’s energy mix and the environmental recovery of the municipalities of Puchuncaví and Quintero.

Hydrogen is an energy source obtained by separating water molecules thanks to the application of electricity which, in the case of this project, will be generated by renewable energies, eliminating all polluting emissions, both in its production and in its use. This is where its “green” characteristic comes from, which has been key to its current momentum in the country.

The project, currently in the process of environmental assessment, contemplates the installation of an electrolysis plant on the grounds of the GNL Quintero regasification terminal, with a nominal power of 10 MW, and estimates an initial production of around 500 t/year, which will be gradually increased depending on the demand for green hydrogen generated in the area. The project will involve an investment of close to 40 million US dollars.

GNL Quintero is working with two partners with international experience in the development of green hydrogen projects: Acciona Energía, which, with its extensive expertise in the field of renewable energies, ensures that the project’s electricity supply is 100% clean; and Enagás, a benchmark company in this field that is promoting 55 specific renewable gas projects (34 green hydrogen projects and 21 biomethane projects) together with more than 60 partners.

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