Hydrogen: Environmentally Friendly Alternative or Energy Imperialism?
In the southernmost region of Magallanes, Chile, a $11 billion green hydrogen mega-project is underway, funded by HNH and backed by the European Union. The project, comprising 194 wind towers, is part of Chile's ambition to become a global energy player through green hydrogen production. However, this ambitious plan raises questions about its impact on vulnerable communities and the environment.
The coastal wetland Bahía Lomas, a Ramsar site, is one such area threatened by green hydrogen projects. Similarly, in Antofagasta, large-scale green hydrogen projects have caused concern among fishermen. Indigenous communities in the Puna de Atacama and Taltal also find themselves facing the encroachment of wind and solar farms onto their ancestral territories.
The Ministry of Energy has created a Green Hydrogen Action Plan to complement Chile's Green Hydrogen Strategy. Companies such as Enel Green Power and Engie are involved in the production of green hydrogen intended for export, focusing on using abundant renewable energy resources like solar and wind power. Long-term effects for local communities include potential economic development and job creation, but also concerns about environmental impacts and land use changes that need to be carefully managed to ensure sustainable benefits.
The European Commission's decision to make hydrogen a key element in meeting European decarbonisation targets has contributed to a race for hydrogen production and transport infrastructures. The Advanced Framework Agreement between the EU and Chile aims to ensure better access to clean raw materials and fuels, including hydrogen and lithium.
However, not all green hydrogen projects in Chile are entirely powered by renewable energy sources. This blurring of the meaning of 'green' hydrogen is a concern for many, especially as the demand for water increases with hydrogen production in a country already facing water stress.
The Chilean Green Hydrogen Association claims that jobs associated with the sector could reach 80,000 by 2030. Yet, citizens' organizations have warned to view these claims with caution. The National Lithium Strategy in Chile has been denounced for violating the rights of Indigenous peoples, raising questions about the fairness of job creation and economic development promised by these projects.
Energy prices in Chile have continued to rise despite a growing share of renewable energies in the national electricity grid. Chile has begun increasing electricity bills in response to debts owed to energy companies after previous price freezes. This, coupled with the potential environmental impacts and land use changes, has sparked debates about the true cost of green hydrogen development.
Degrowth intellectuals argue that the desire to continue to support the 'imperial mode of living' of Europeans is an inevitably colonialist political stance. As green hydrogen development continues in Chile, it is crucial to ensure that the benefits are equitably distributed and that the rights and well-being of vulnerable communities are prioritised.
Recently, Highly Innovative Fuels (HIF) Global has reported successful commercial exports of carbon-neutral fuels from Magallanes. While this is a step towards a more sustainable future, it is essential to remember that the journey towards green hydrogen development must be one that prioritises justice and sustainability for all.
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