Wednesday, 09 September, 2020

Chile Goes for Green Hydrogen from ecpamericas 9/9/20

As countries around the world scramble to lower their carbon emissions, many are looking to green hydrogen—in other words, hydrogen produced using renewable energy—to help them meet their goals. One country that believes it is especially well positioned to be a major player in that market is Chile. Energy Minister Juan Carlos Jobet has encouraged the country to “think big” about Chile’s prospects as a producer and exporter of green hydrogen.

“Every day I am more convinced that this is an extraordinarily positive opportunity for Chile,” Jobet said during a webinar in June—the first of several virtual meetings held in recent weeks as part of a broad government effort to forge a National Green Hydrogen Strategy.

Green hydrogen has the potential to yield enormous environmental, social, and economic benefits, Jobet explained. On the environmental front, it could give Chile a boost toward its goal of becoming carbon-neutral by 2050, he said, adding that green hydrogen could account for about a quarter of the total reduction in carbon emissions the country will need.

A green hydrogen industry will also help Chile diversify its economy, create jobs, attract investment, and open up new opportunities for individuals, cities, and regions through the establishment of “development hubs or ecosystems” centered around this technology, Jobet said.

One reason green hydrogen makes sense for Chile, he said, is the country’s abundant renewable energy potential—estimated at more than 70 times what it needs for domestic electricity consumption. “We have to find ways to harness that renewable energy and export it to the world,” he said.

Chile is moving at a “dizzying” pace to lay the foundations for this new industry, according to Max Correa, who heads a division in the Energy Ministry in charge of fuels not used to produce electricity—including green hydrogen. The country’s experience with solar photovoltaic (PV) energy shows the kind of progress that can be made in a short time, he said in a recent interview. In 2013, the country’s annual production of solar PV energy totaled 7 gigawatt hours (GWh); in 2020, it will come to nearly 1,000 times that amount.

“We think that something similar will happen with green hydrogen,” Correa said. And this is not some far-off dream, he added. “This is now. In this decade, there will be large-scale projects developed for domestic use but also for export.”

Hydrogen Momentum

On a global level, this is a time of “unprecedented momentum” for hydrogen, as the International Energy Agency (IEA) put it a report last year called The Future of Hydrogen. Although previous “waves of enthusiasm” for hydrogen’s potential have come and gone, the report said, this time around, hydrogen could be on a path to fulfill “its longstanding potential as a clean energy solution.”

Today, hydrogen is used mainly in industry, with oil refining and the production of ammonia for fertilizer the top two applications, followed by the production of methanol and steel. The hydrogen used in these industrial processes is extracted “almost entirely” from fossil fuels—primarily natural gas and coal—and its production “is responsible for annual CO2 emissions equivalent to those of Indonesia and the United Kingdom combined,” the IEA report said. “Harnessing this existing scale on the way to a clean energy future requires both the capture of CO2 from hydrogen production from fossil fuels and greater supplies of hydrogen from clean electricity,” it added.

Chile 2020 Green Hydrogen Summit Chile plans to roll out its National Green Hydrogen Strategy at a conference on November 3-4, which will include the participation of President Sebastián Piñera, as well as high-level government and private sector participants from around the world. The event will highlight the role of hydrogen in the global energy transition, as well as the role it can play in achieving net-zero carbon goals in Chile and the rest of Latin America. More information is available here.

Although there is no standardized nomenclature for hydrogen, these days it is often assigned a color depending on how it is produced. “Black” hydrogen comes from coal, “gray” from natural gas, and “brown” from lignite; “blue” refers to fossil fuel-based hydrogen in which CO2 emissions are reduced by carbon capture, use, and storage. (As Greentech Media put it in one story, “For a colorless gas, hydrogen gets described in very colorful terms.”)

What Chile is placing its bets on is green hydrogen—also known as renewable, clean, or electrolytic hydrogen—produced through electrolysis, a process that uses electric current to split H2O into its two components, hydrogen and oxygen. When the electricity comes from renewable sources, such as solar PV or wind energy, the hydrogen that is extracted is clean.

Producing hydrogen from renewable energy is still relatively costly, but the IEA projects that the cost could fall by 30% in a decade, due to declining costs of renewables and the expected benefit of manufacturing equipment such as electrolyzers on a larger scale.

New hydrogen projects have been cropping up around the world in recent months, though most of them are not on the green end of the spectrum. Depending on their energy mix, many countries that are aiming to produce green hydrogen someday will start out using fuels such as natural gas or even coal, according to Correa.

The largest green hydrogen project so far, announced in July, is a $5 billion undertaking to be built in Saudi Arabia, powered by 4 gigawatts of wind and solar power. Air Products, a U.S. gas and chemical company, is partnering on the project with the Saudi electric utility and desalination company ACWA Power and the planned city of Neom.

Wealth of Renewables

With Chile’s wealth of renewable resources—a Washington Post piece in 2017 referred to the country as “a solar Saudi Arabia”—it will be able to produce hydrogen that is “100% green,” Correa said. The Atacama Desert has the highest levels of solar radiation on the planet, while the southern part of the country has major wind potential, he said. Another asset is Chile’s strong port infrastructure. 

Those advantages, along with the ever-lower costs of producing renewables, will give the country an edge, Correa said—despite its distance from potential end-user markets, mainly in Asia. The consulting firm McKinsey & Co. has determined that by 2030, green hydrogen in Chile could become competitive with gray hydrogen made from natural gas, according to a presentation the company made during the webinar in June.

Hydrogen can be transported in different ways, including through a process much like liquefied natural gas, in which the hydrogen is converted into a liquid for transport and then back into a gas at its destination. It can also be combined with other elements into compounds that are easier to handle, ship, and store.

Because of hydrogen’s nature as a “building block,” Chile will be in the business not just of green hydrogen but “green molecules” with a range of uses that can help cut emissions in sectors that have proved hard to decarbonize, Correa said.

One example: hydrogen combined with nitrogen makes ammonia, a feedstock for manufacturing fertilizers. When green hydrogen is used, it eliminates the ammonia’s greenhouse gas emissions. That could have a huge impact, since ammonia is already one of the most commonly used chemicals in the world. The shipping industry, which has ambitious targets to lower emissions, plans to use green ammonia as its fuel of choice, Correa noted. (The newly announced project in Saudi Arabia will produce green ammonia for export to global markets.)

Meanwhile, Chile has the potential to reduce its own carbon footprint by using green hydrogen in the mining industry. While the industry has made strides in terms of using clean electricity, it still has a long way to go when it comes to the direct use of fossil fuels, Correa said. For example, he added, each of the giant trucks used in mining can burn up to 3,000 liters of diesel per day. He pointed out that projects in South Africa are starting to use green hydrogen to fuel these mining trucks, adding, “Chile has an obligation to move in that same direction.”

It’s not just about meeting international climate goals, he said, but about responding to markets that are increasingly demanding smaller carbon footprints throughout the whole cycle of production, starting with raw materials. There is added value in “green copper.”

National Green Hydrogen Strategy

In the past few months, the Energy Ministry has spearheaded a process to design a long-term strategy for green hydrogen. It has held a series of technical roundtables with experts, companies, professional associations, and other players, and has been consulting with civil society organizations to discuss how to extend the benefits of this potential new industry as broadly as possible. 

The Energy Ministry is working closely with other government agencies to ensure that it is laying a strong foundation for the future. International consultants such as McKinsey & Co. are providing input, and the Inter-American Development Bank (IDB) is working on a study to analyze the export market in detail.

The process of putting together a strategy includes identifying barriers and gaps that could keep green hydrogen from taking off, Correa said. The country is not in a position where it can invest massive amounts of public resources in green hydrogen, he explained, but it can provide targeted incentives and gradually eliminate some of the “hidden subsidies” and distortions that tip the scales toward fossil fuels.

The right kind of regulatory structure is also important, he said, noting that laws enacted in 2008 and 2013 helped spur investment in the solar and wind industries that are so important to Chile today.

The goal is to create a regulatory and policy structure that comes from the state and not any one administration, Correa said. An advisory council involved in the process includes representatives from across the political spectrum, to ensure that the policies that are developed will last over time.

Energy Minister Jobet also stressed that long-term perspective in his remarks during the webinar in June. “The efforts required for us to be successful in green hydrogen have to go far beyond the duration of this government,” he said.

And, he said, the green hydrogen initiative will require everyone’s combined efforts—not just government, but business, academia, and civil society too. “The government and the state can facilitate—it has a central role—but this is something we will all do together,” Jobet said. “If not, we won’t be able to do it.”  

chile fiasco - latin american people deserve better

for months now apec countries have been brainstorming solutions uniquely important to the sustainability of all of us- and the chile summit had been promised as one of the most important of the year CANCELLED DUE TO RIOTS  climate talks were expected to focus on the rapidly deteriorating condition of the world’s oceans, as well as spur momentum going into a fresh round of national pledges on emissions cuts next year. cop25 programme was due to run between 2 and 13 December. Apec summit was scheduled to bring together 20 world leaders,' ==== chiles cancelling of november hosting poses two questions: where will all this work get updated what can be changed so that latin american peoples connect positively with the 2020s-last years argentina g20 was inasdequate as a bridge to a rising crisis of leadership of nations Priorities for APEC Chile 2019 Chile as host economy of APEC 2019 has chosen four priority areas to achieve concrete deliverables in 2019. These priorities will be worked on throughout the APEC Chile year and were presented to APEC economies in December 2018 at the Informal Meeting of High Representatives (ISOM), which was the beginning of the Forum's Chilean presidency. SHARE Digital Society The rapid evolution of the Internet and the digital economy impacts all areas of APEC’s work, including infrastructure, regulatory frameworks, trade rules, human capital development and the future of labor. Chile will use the digital economy to drive the democratization of participation based on APEC’s current efforts, which include the “Internet and Digital Economy Roadmap” and the results of the new governance APEC agreed upon in 2018. We will implement a plan of action that offers short-term “gains” and sets the foundation for more challenging long-term progress. In this context, we will work to improve the quality and coverage of telecommunications infrastructure and to create shared regulatory principles that improve electronic and digital trade flows by designing cross-border digital trade standards. Technological processes demand changes and adjustments to the education and labor system; we will work on incorporating ways to harness opportunities that arise. Moreover, we will develop a methodology for producing harmonized data on APEC economies. Scholars, companies, the technical community and all digital development stakeholders will work together on all these initiatives in order to incorporate this vision into the forum’s work. Integration 4.0  Physical, institutional, and people to people connectivity are instrumental for trade, and many efforts are in place in APEC and other fora to advance it. However, connectivity is a means to an end — integration. Integration 4.0 is the foundation for the 4th industrial revolution, which anticipates a digitalized world with adjusted perceptions of time and space. Unlike the first generation of twentieth century tariff-centric reciprocal agreements, based on preferential treatment, this next generation calls for a new era of trade policy and regional integration, which aims to reduce frictions and facilitate movement at the border, across the border, and behind the border.  In this context, we will focus on the next generation issues of Integration 4.0 such as Trade facilitation, customs-coordination, border management automation, regulatory convergence, participation in global value chains (GVCs), people and knowledge mobility, and investments in infrastructure. We will develop fundamental platforms for promotion of GVCs, Single Window Interoperability, regional skills mobility and Authorized Economic Operator programs, and international regulatory cooperation. All of these elements are essential in progressing a Free Trade Area of the Asia-Pacific. Women, SMES and Inclusive Growth Women We know that increasing the participation of women in the economy is critical: It is one of the key factors in reducing poverty and ensuring that the population shares the benefits of growth. As a region, we still face great challenges, particularly reducing the labor market divide, in terms of access and opportunities. We will work devising strategies to attract, retain and promote talented women in industries traditionally dominated by men, like mining, transportations and energy; guide our efforts to close the digital divide which prevents women from fully participating in trade and increase attention, and encourage economies to collect and use data about the extent of gender equality within the workplace. To this end, we will work towards an Action Plan that contributes decisively to the economic empowerment of women in the region. SMEs Small and medium enterprises (SMEs) are the engines of growth and innovation in the APEC Region. SMEs account for over 97% of all business and employ over half of the workforce across APEC economies. They contribute significantly to economic growth, with their share of GDP ranging from 20 to 50% in most APEC economies. Building on what was agreed in the Boracay Action Agenda and the progress made to date, our main objective in APEC Chile 2019 will be to address the regulatory challenges that SMEs face day-to-day. Thus, Chile will promote the economic integration of SMEs in international trade in the APEC region through initiatives that focus on reducing trade barriers, simplifying regulations, improving access, and strengthening the capabilities of SMEs to realize the benefits of globalized trade, particularly in the area of digital trade. We will advance in promoting electronic certification and digital signatures, in addition with facilitating access to information and communication technologies. Sustainable Growth  Protecting our oceans and marine ecosystem Combating illegal fishing The threat of illegal, unreported and unregulated (IUU) fishing practices is becoming a global concern. IUU fishing distorts global fish trade and has a negative impact on fish stocks, the marine ecosystem, and food security. Given the importance of IUU fishing to the region, during the year 2019, Chile proposes that the Declaration of Leaders encourages each economy to develop and carry out an Action Plan to combat illegal fishing within a given period (to be established.) Prevention and reduction of Marine Debris Marine debris monitoring is important for improving Oceans protections and identifying prevention policies. Data drawn from assessments made by researchers and quantitative evaluation by citizens, can be used to determine levels and sources of contamination. In APEC Chile 2019 we would like to develop pilot projects for monitoring marine garbage in the region at the coastal edge, with the objective to advance towards a regional standard. In addition, we will promote the commercialization of products without mercury added. Sustainable energy: modernization for a better quality of life Energy cooperation has become an increasingly important agenda item for APEC. Today we see the development of technology and new technical procedures having a positive impact on the generation, transmission and distribution of energy. Cheaper and cleaner energy impacts directly on economic activities, on the environment and on the general welfare of society. In APEC Chile 2019 we would like to intensify the work on electromobility and the potential this area has in the Region. In addition, Chile will host the energy Working Group Meeting next year. Smart Cities Smart Cities, for our people. In 2007, for the first time in history, most of the world's population lived in cities. By 2050, up to 80% of earth's total population, will live in urban areas. Cities will continue to be central to economic growth, as will the power of integrated services, harmonized systems, and economies-of-scale. Smart technologies allow us to more accurately monitor and assess the way we interact with the natural and man-made environment. The efforts that the Asia-Pacific region make towards to this end, must include cooperation on inclusive urban growth, boosting innovative and sustainable urban infrastructure, and building smart and green cities - which are future proofed, livable and healthy.