Hydrogen: Eco-friendly Alternative or Energy Imperialism Debate?
Chile is embarking on an ambitious journey towards becoming a global energy player, with a focus on green hydrogen. This shift comes after the country has started increasing electricity bills to address debts owed to energy companies, following previous price freezes.
The Chilean government's strategy for hydrogen has involved less state control compared to lithium, with a focus on commercial cooperation agreements and wealth funds to encourage private investment. One such investment comes from HNH, which has funded a 11 billion-dollar integrated green hydrogen mega-project in Magallanes, consisting of 194 wind towers.
This project is one of 18 green hydrogen projects on the agenda for the Magallanes region, coordinated by CORFO (Corporación de Fomento de la Producción). However, these projects have raised concerns, with the coastal wetland Bahía Lomas, classified as a Ramsar site, threatened by some of these initiatives.
The European Commission's decision to make hydrogen a key element in meeting European decarbonisation targets has contributed to ramping up the race for hydrogen production and transport infrastructures. The EU has partnered with Chile to supply green hydrogen imports.
Highly Innovative Fuels (HIF) Global has reported successful commercial exports of carbon-neutral fuels from Magallanes, marking Chile's first e-fuel pilot. Yet, concerns remain about the impact of large-scale green hydrogen projects on marine life, particularly in the Antofagasta region, where fishermen are worried about the depletion of marine life and lack of impact measurement mechanisms.
Indigenous communities in regions such as Taltal and the Puna de Atacama are also facing threats from the encroachment of wind farms and solar-wind hybrids onto their ancestral territories. The incorporation of monitoring tools and advisory councils in the 2024 Green Hydrogen Action Plan has failed to seriously address these underlying issues, as it continues to push for the same production targets as the widely criticized 2020 scheme.
Degrowth intellectuals argue that the desire to continue supporting the 'imperial mode of living' of Europeans is an inevitably colonialist political stance, and there is a need to critically examine the current energy consumption and needs of the world's richest societies. They caution that while green hydrogen offers potential benefits, it must be approached with caution to ensure it does not exacerbate existing inequalities or harm the environment.
As Chile moves forward with its green hydrogen ambitions, it is crucial to balance economic growth with environmental and social responsibility. The potential for job creation, estimated to reach 80,000 by 2030, is promising, but citizens' organizations have warned that these claims and corporate promises should be viewed with caution. The future of green hydrogen in Chile will depend on its ability to strike this balance effectively.
