High in Chile’s sun-drenched Atacama desert, Gaston Caceres and five other engineers are working on plans for a huge solar-powered hydrogen project that reflects their country’s ambitions to become a leading exporter of the fuel. “Green” hydrogen, which is extracted from water using electrolysis in a process powered by renewable energy, is touted as a potential game changer in the race for net-zero emissions by cutting fossil fuel dependence to fight climate change.
But despite Chile’s abundant supplies of wind and solar energy, Caceres is candid about the challenges ahead for the nascent project – not least its $4 billion-$5 billion estimated price tag.
“There aren’t tax breaks or other governmental benefits for these type of big project developments,” he said.
Global efforts to reduce dependency on oil and natural gas have gained urgency as the Ukraine war disrupts Europe’s energy…