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MAY 11, 2021

Minister Juan Carlos Jobet: “This is a historic day. We will produce the fuel of the future in Magallanes to combat climate change”

  • After passing Chile’s first green hydrogen project, the Energy Minister highlighted that this is “an important step for sustainable green recovery.”

  • Haru Oni plans to build a plant to produce e-fuels, a 3.4 MW wind turbine, and a backup transmission line of 13kV.

Energy and Mining Minister, Juan Carlos Jobet, spoke this afternoon about Chile’s first green hydrogen project, after the Regional Commission for the Environment in Magallanes gave its unanimous approval to the Environmental Impact Statement (Declaración de Impacto Ambiental, DIA) of the Haru Oni project, which is implemented by Highly Innovative Fuels (HIF). This initiative aims to build a plant in southern Chile to produce hydrogen-based e-fuels.

Following the Commission’s decision, Minister Jobet celebrated and said, “This is a historic day. We will produce the fuel of the future in Magallanes to combat climate change. This is an important step for sustainable green recovery.” 

According to a study carried out by the Energy Ministry, the Magallanes Region’s immense wind power potential could help it produce up to 13% of the world’s green hydrogen, considering that the estimated annual production of wind energy in Magallanes could be more than 7 times the current electricity production in Chile’s electricity matrix.

“Our country has the best strategic conditions to produce and export green hydrogen. Magallanes is one of the best places to do this.  Not only does it have excellent wind energy potential, but it also has the infrastructure and petrochemical experience needed to become internationally recognized for the fuel of the future,” said Minister Jobet.

Magallanes Regional Governor, Jennifer Rojas, declared that “today is a very important day for Chile and the Magallanes Region. It is undoubtedly an enormous achievement for everyone, because we are going to begin a decarbonization process using the full potential of Magallanes. Based on studies, the region is capable of producing up to 13% of the green hydrogen the industry requires.”

 “Our government is committed to growth and innovation, and we are willing to continue evaluating projects of this kind and working proactively in the fields of science and technology,” she concluded.

About the Project:

Haru Oni plans to build a plant to produce e-fuels, a 3.4 MW wind turbine and a backup transmission line of 13kV.

Located on the Tehuel Aike property in Punta Arenas, the plant will use a surface area of approximately 3.7 hectares and the total project will occupy 5.7 hectares. Construction is estimated to take 11 months and its service life will be 25 years.

The process

The pilot project will obtain green hydrogen from water with wind energy and then use a synthesis process with CO2 captured from the atmosphere to produce methanol. This will provide gasoline that can be used in conventional unmodified vehicles, enabling transportation to be almost carbon neutral.

It is expected to produce 350 tons of raw methanol each year and 130,000 liters of gasoline per year. Both fuels will be stored in tanks and transported in trucks to Puerto Mardones, about 35 kilometers away from the project, from where they will be exported.

As of 2022, it will produce an estimated 16 annual tons of carbon-neutral liquefied gas.

During the construction phase, the project will provide jobs for an average of 150 people.