#TouchingHydrogenFuture - #Chile
Erik Rakhou
Energy Policies expert | Associate Director BCG | Management consulting | Former member ACER Board of Appeal | Initiator and co-author "Touching Hydrogen Future" | #5 ??thought leader Hydrogen @Illuminem | Podcast cohost
How hydrogen will change our lives.?????Tour across the world.
Second stop: Chile 2030 - 2040
This is part of short series of stories on the global Hydrogen future, written by a group of Hydrogen passionados, making concepts accessible to a wider audience, allowing both entertainment and education including readers from all continents for whom affordable and clean energy is key. Helping students and others to decide to help in building a hydrogen economy.
How would the hydrogen future feel and be to live in? We combine Jules Vernes ideas about hydrogen’s promise and travelling as proof. We present you a quick tour around the globe in 2030s. We visit the countries with Hydrogen ambitions as if in 2030s the 2020s PowerPoints have become real life. Through eyes of today’s passionado’s, we show you how the Hydrogen world will feel like and invite you to join building it.
Imagining the future is delivering it. Writers in over 20 countries joined our initiative. We welcome your comments and debate. Let's travel to #Chile.
?Author: Eric Ehrhardt. Editors: Erik Rakhou, Rosa Puentes Fernandez.
Over the next few pages, I’m going to take you across the extremely diverse and beautiful 4430 km of Chile. All the way from the northern red-rock deserts to the lush southern valleys full of lakes and glaciers. We’ll make sure to stop by the bustling capital of Santiago with the Andes on one side and the Pacific on the other.
Chile is at a time of transition; it’s reaching towards energy independence through clean energy. The new policies and strategies are shaping up to be some of the most forward-thinking in the world concerning the environment and the role energy plays[1] . We’ll be looking at how Hydrogen could develop in Chile over the coming years.
Have you ever wondered what a country completely run-on clean energy might look like? Chile in 10 years just might be one of the first. Let’s travel to that time in the Atacama desert; afterwards, we’ll jump through time twice more, and to 2 new locations, Santiago and Patagonia, to give you a feel of the possibilities of hydrogen in Chile. We show some of the routes we will visit in the figure on the top. Through the stories, we’ll look at hydrogen through the lens of locals across the country. Let’s go.
The distinct red sands of Chile’s largest desert battered my helmet’s visor as I sped up and down the dunes. My hydrogen-powered ATV (all-terrain vehicle) roared as I pushed it to its limits. It had already taken me most of the way on my 70 km rocky trip from the closest town of Calama, as the picture below shows. With the sun beating down you could tell that the most powerful solar radiation on the planet is found in Chile’s north (>30-35% solar load[2] ).[3]
I was on my way to the recently expanded ‘Cerro Dominador Solar Power Plant’, having been bought by the Chilean government from a Spanish energy provider a few years ago. It was the first big step to an energy independent Chile. It’s been my job to oversee all the green hydrogen plants that have been added to the growing solar fields. I’m typically working from the office, but every now and then I like to get out and see the plants for myself.?
Ever since the Hydrogen Strategy was announced back in 2020 the goal of 25 GW of electrolysis capacity was set, and it keeps me busy. My mind started to drift thinking about how far we’ve come. But before I could indulge in memories too much my partner Martin came in over the radio “Alejandra, I see it, it’s just over the ridge.”
As I reached the top of the hill, there it was -the concentrating solar power (CSP) plant. It’s beautiful in a way, it looks like a mosaic made up of thousands of solar panels all facing the central tower. Despite having visited the plant the previous year it looks like it has doubled in size, the scene is mesmerizing to the eye. I wanted to stay there for some time to take it all in, but Martin was already speeding down the dune.
Martin is my right-hand man, he’s the technical specialist when it comes to anything hydrogen and has more energy than anyone I know. Good thing he does, because we have received a solar-to-hydrogen plant proposal every 6 months from the developers. Don’t get me wrong the progress is incredible, but I wish I had Martin’s energy to keep up.
On our way to the Hydrogen plant, we made sure to keep our distance from the panels, as to not cover them in sand. We passed the massive 1 GW electrolyser installations each capable of producing 0.15 million tonnes of hydrogen a year. That’s the equivalent of 2 coal-fired power plants or 750,000 homes.[4]
We went inside, and mercifully the air conditioning was blasting, a perk of affordable energy. We were greeted by the plant manager, a former supervisor at the Ventanas coal plant down in the Valparaíso Region, which was phased out 6 years ago. Martin wasted no time, before the man could say anything more than hello Martin asked “So how’s the production start looking? Have we finalised installing the 5 GW? Have we started shipping hydrogen out to Antofagasta?” The manager, obviously a little overwhelmed, took a second to gather his thoughts and answered Martin -“Yes sir, everything has been running better than expected, the last installations were made last week and our electrolyser capacity is now just over 5 GW. The current batch of Hydrogen supply is already flowing through the pipeline, we're also filling up some tankers headed to Mejillones with liquid Hydrogen for exports[5] .”
My hometown Antofagasta is next to Mejillones, right on the coast of Chile some 130 km from the plant. In the past few years, they’ve seen millions in investment, having become one of the main export shipping hubs for the hydrogen being produced.
Martin responds, “That’s great to hear, could you give us a ride around the production plant, as our ATVs are going to need a refill as well.” The plant manager nodded, and we got on our way. We couldn’t stay long we were still planning on visiting the Bolero solar plant some 75 km south. On the tour of the plant, Martin was like a kid in a candy shop. Running from electrolyser to tanker loading area (which included liquefaction and compression installations for filling tankers, depending on the needs of clients), and then back to the control rooms asking questions no stop.
I had prepared a surprise and I was certain that it would have Martin at a loss for words. After a walk through the solar field, we came out on the other side and there it was a state of the art hydrogen helicopter[6] . Martin was overcome with excitement spouting facts to anyone who’d listen “Did you know that the hydrogen fuel system in this has four times the energy density of existing Li-ion batteries!” [7] We made our way to the helicopter and got ourselves ready for the short trip, with the next stop being Bolero.
Up in the air looking down at the mosaic of solar panels and the fields full of installed electrolyser installations, nicely blended into the surrounding nature, I thought back to where it all comes from. It still blows me away how an element so simple can be harnessed to revolutionize a country’s energy supply and uses.
Now we race forward in time and make out way south to the heart of Chile, Santiago.
2040 – Santiago City Centre
As soon as I open the door to the apartment building, the sounds of the city flood in. I put my headphones on and step out into the bustling street making my way towards the metro. Ever since Chile has become one of the major green hydrogen exporters, Santiago has exploded with investment and people. I still can’t believe the city is on track to reach 10 million inhabitants by the end of the year. I walk down the steps of the metro and can already hear the high-pitched whining of the trains as they rush past. I get down to the platform and glance at the updated metro map, 2 new lines have been added in the last year. The steady hydrogen and renewable energy supply have fuelled the expansion of the metro in the past few years from 100km of rail to 175 km[8] . Better yet, the government keeps dropping the prices of the tickets because it’s so affordable to run the trains, it’s also helping get cars off the street.
I step into the train and find a seat, they’re much more comfortable than the older models. They had to switch out the older carriages to work with the new high-speed electric tracks. Now the metro accounts for 5% of the domestic energy usage[9] .
The light in the carriage flickers, just a faulty bulb but it makes me think back to daily power cuts that used to occur. Those days are behind Chile thanks to the backup hydrogen cells. Whenever there is an excess of renewable power that isn’t sold directly on a centralised power market or used, it gets stored in hydrogen tanks[10] . With every building in Santiago being topped with solar panels that problem is more common than you’d think. I remember 3 years ago when we got hit by one of the biggest storms of the last decade, a significant portion of the renewable’s infrastructure was damaged, solar panels and wind turbines alike. The hydrogen reserves are what kept the country running during the rebuilding period.
I’ve been an energy trader for the past 10 years. The industry grew exponentially once Chile made strides on its hydrogen plans and became a net exporter of energy. I can barely keep up nowadays, with green hydrogen dropping close to 1 USD/kg, as Chile has become one of the leading exporters of energy in the world. Chile and Santiago in particular are flourishing, but everyone in South America wants to repeat the success.
Today I have been invited, as a senior expert, to speak with the energy Minister of Peru. They’ve been looking to us, their neighbours in the south and have taken an interest in investing in a green hydrogen project on the border of our two nations.?Being immersed in the world of energy, specifically hydrogen, it was my job to clear up any doubts they have about the project and green hydrogen as a whole.
The phone rings, it’s the energy minister calling “Como estai minister, I’ve been looking forward to speaking with you.”
Energy Minister: “I’m doing well Vicente, let’s get right into it, I have some questions for you.”
?Me: “Sounds good, I’m here to discuss with you why green hydrogen is the right direction for both our countries”
?Energy Minister: “Alright then, first things first why should we pursue green hydrogen rather than any other energy vector, given the high energy and water requirements?”
?Me: “Valid question, our two countries are in a unique position; we have an expansive renewable energy capacity and untapped potential. Look at Chile, we’ve utilized the coasts and mountains for wind power with attractive load factors > 70%, vast deserts for solar with attractive load factors > 30%, and the spanning rivers for hydropower. Few countries on earth rival our ecological diversity, our load factors and thus renewables we have access to. So, for Chile, the problem hasn’t been generating renewable energy, it has been utilizing it and storing that energy efficiently and effectively. It is all well and good to have 25 GW of solar energy capacity, but that clean energy doesn’t transfer by itself into lowering the emissions of our mining operations or dropping the carbon footprint caused by heating our homes. It doesn’t even really help Chile become a net energy exporter. That is where hydrogen molecules came in and helped build the Chile we live in today.”
?Energy Minister: “Well that covers some of my “why” concerns but what about the water costs, as I understand, electrolysers require freshwater for green hydrogen and lots of it.”
?Me: “This is true[11] , and it was one of the main concerns Chile had when committing to green hydrogen. However, after doing the research we found that desalinization was the answer. With less than 1% of the world water being freshwater we decided to keep the burden off the people’s water supply. We found that the power required to run desalinization plants was at most 0.13% of the energy required to run the electrolysers, so the choice was simple. Even from an economic perspective desalination added no more than 0.01 USD/kg[12] to the cost of hydrogen production which enables us to stay below our 1.5 USD/kg goal.”
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?Energy Minister: “That’s all very compelling Vincente, I have to think it over. If Peru did decide to partner with Chile on a project, what could we expect?”
?Me: “I'm not sure if you know this Minister, but green hydrogen can be used to create green ammonia. So, the hydrogen we’d produce on our border doesn’t have to necessarily go towards the energy grids. I know Peru has been trying to reduce their carbon footprint, and the green ammonia, which is used in the fertiliser industry, would go a long way in dropping the environmental impact of your large agriculture industry. Like my father used to say, ‘Technology is mouldable’ - green hydrogen is no exception.”
?Energy Minister: “Thank you Vincente, I hadn’t thought of that connection and am sure that’ll factor into our decision. Thank you for the information, we’ll talk again soon.”
Moving on to our next location we make our way further south to the beautiful Chilean Patagonia.
I’m so glad I’m finally getting the chance to climb Volcán Calbuco (see figure for the locations above), it’s giving me time to clear my head and admire the countryside. The air is thinner up here at 2000m, regardless the breeze feels like it goes right through my coat.
Doting the countryside below me, I see the wind turbines, most of them supplying the power to the neighbouring green hydrogen plant. They’re becoming more common, as I get closer to the coast where the bulk of them are, most of them feed the 4 GW green hydrogen production facility there. The towering 120 m turbines cast a shadow across the valleys, where you can see the herds of Guanaco grazing on the picturesque landscape.
?I’ve made it 6 days into my 10-day hike, I’m on the back end of my 240 km from the Argentinean border to the Chilean coast. So far Cerro Tronador gave me some trouble being 3,500m but Calbuco is a walk in the park in comparison. I reach the peak and look out over the valley; I just barely spot the hydroelectric dam in Pilmaiquén with my binoculars. It provides over 310 GWh a year[13] so it was one of the first to get a hydrogen production facility next to it.
I start making my way down the other side of the mountain, meanwhile looking ahead, and plotting my way through the boulders. There’s a clearing coming up, turns out it’s a decommissioned copper mine. Surprisingly the air feels crisp and clean in the quarry. With the rise of the energy export era in Chile, we could afford to scale back the mining operations. The drills, still active, have been switched over to electric or hydrogen cells limiting their environmental impact. The positive impact is easy to see in the recovery of the local wildlife.
?4-days later in same Chilean Patagonia
?Lining the coast, I can see not only the 120m offshore wind turbines but also pipes sending saltwater to the nearest desalination plant. 15 years ago, Chile wasn’t even in the top 50 when it came to the percentage of energy consumption that came from renewables[14] now, they’ve reached the top 15 in no small part thanks to hydrogen. Through export profits being used to expand renewables infrastructure, Chile has preserved its environment and most importantly invested in the people, as the hydrogen economy brings jobs and opportunities.
….Onto next time journey soon…
?
Editorial note.
This is the 2nd in series of pre-released sections of the book that we are planning to write in collaboration with other Hydrogen passionado's. The book would consist of multiple chapters, each of them showcasing how life would be in different countries across the globe in 2030s/2040s if the current announced H2 projects/H2 valleys/H2 strategies had developed. The purpose of the book is mainly educational, and aimed at those who wonder if to get involved with Hydrogen economy. The footnotes, sources, and some of conversations, provide the second layer for those who already started their journey in the Hydrogen economy. Book is aimed to have been compiled by early 2021, ready for free digital distribution.
We welcome feedback, as this is an evolving draft, that will be eventually bundled in a global tour of Hydrogen future.
Note that some of the next countries to appear in this global series through various authors who committed to voluntarily contribute to this open source project are in random order: Germany, UK, Saudi Arabia, Australia, Greece, Ukraine, Morocco, Namibia, United States, and more emerging.
Disclaimer:?The opinions expressed are purely those of the authors and in no case can they be considered as an official position of the organizations.
The information presented here is based on available public information from announced projects. In any case can be considered a guarantee of what may or may not happen in the future. The author(s) reserves the right to include additional fictional projects or features for the sole purpose of this stories book.
[1] https://www.energymonitor.ai/policy/just-transition/why-chiles-new-constitution-can-encourage-a-just-energy-transition
[2] Load factors being discussed at: Individual news - ICIS Explore
[3] https://energia.gob.cl/sites/default/files/national_green_hydrogen_strategy_-_chile.pdf
[4] https://www.mercurynews.com/2011/11/08/california-hits-renewable-energy-milestone-1-gigawatt-of-solar-power-installed-to-date/
[5] See example of such exports plans in current world, at Ministry of Energy in Chile and Port of Rotterdam Authority sign MOU on green hydrogen | Port of Rotterdam
[6] https://luxurylaunches.com/transport/the-worlds-first-hydrogen-powered-helicopter-might-be-the-answer-to-sustainable-air-travel.php
[7] https://luxurylaunches.com/transport/the-worlds-first-hydrogen-powered-helicopter-might-be-the-answer-to-sustainable-air-travel.php
[8] https://www.railway-technology.com/projects/santiago-metro-new-lines/
[9] https://www.railjournal.com/in_depth/chilean-capitals-metro-network-enters-an-era-of-expansion
[10] https://energystorage.org/why-energy-storage/technologies/hydrogen-energy-storage/
[11] See for example of needed water for electrolysis, general article at: Hydrogen production in 2050: how much water will 74EJ need? - Energy Post
[12] https://pubs.acs.org/doi/10.1021/acsenergylett.1c01375
[13] https://www.enelgreenpower.com/stories/articles/2019/03/pilmainquen-hydroelectric-plant-creates-shared-value
[14] https://www.iea.org/fuels-and-technologies/renewables
CPO at PTR Inc.| Power Grid, Energy Transition
2 年Zeeshan Sami Khan
Energy Policies expert | Associate Director BCG | Management consulting | Former member ACER Board of Appeal | Initiator and co-author "Touching Hydrogen Future" | #5 ??thought leader Hydrogen @Illuminem | Podcast cohost
2 年#touchinghydrogenfuture
Board member, advisor and sparring partner to entrepreneurs and investors in the energy transition
2 年Imagining the future is a great tool to actually create it and start public debate. So much for the credit. I would rather imagine two or three HVDC power lines running north and east from Chile to make use of the cheap power supply and export energy in the form of electrons to other time and climate zones.
Approvals Manager (Offshore Wind) at Renewable Energy Sources (RES) Australia Pty Ltd
2 年May have wondered what the hydrogen economy would look like in 10-20 years. However, we are still 10-20 years away from discovering that. By then the hype will have been replaced by the stark reality of economics and energetics.
Speaker, analyst, advisor, investor in the future economy. Host of Cleaning Up, podcast on leadership in an age of climate change. Managing partner, Ecopragma Capital.
2 年Sorry, this is more unremitting #HydrogenBollox. There, that's more feedback for you to thank me for - and no doubt ignore.