Social Science

The role of hydrogen for deep decarbonization of energy systems: A Chilean case study





  Peer Reviewed

Abstract

In this paper we implement a long-term multi-sectoral energy planning model to evaluate the role of green hydrogen in the energy mix of Chile, a country with a high renewable potential, under stringent emission reduction objectives in 2050. Our results show that green hydrogen is a cost-effective and environmentally friendly route especially for hard-to-abate sectors, such as interprovincial and freight transport. They also suggest a strong synergy of hydrogen with electricity generation from renewable sources. Our numerical simulations show that Chile should (i) start immediately to develop hydrogen production through electrolyzers all along the country, (ii) keep investing in wind and solar generation capacities ensuring a low cost hydrogen production and reinforce the power transmission grid to allow nodal hydrogen production, (iii) foster the use of electric mobility for cars and local buses and of hydrogen for long-haul trucks and interprovincial buses and, (iv) develop seasonal hydrogen storage and hydrogen cells to be exploited for electricity supply, especially for the most stringent emission reduction objectives.

Key Questions

What role does green hydrogen play in Chile's strategy to reduce emissions by 2050?

The study finds that green hydrogen is a cost-effective and environmentally friendly solution, especially for sectors that are difficult to decarbonize, such as interprovincial and freight transport. It also highlights the synergy between hydrogen production and renewable electricity generation.

What are the recommended actions for Chile to integrate green hydrogen into its energy mix?

The research suggests that Chile should:

  • Initiate the development of hydrogen production through electrolyzers across the country immediately.
  • Continue investing in wind and solar generation capacities to ensure low-cost hydrogen production and strengthen the power transmission grid to support distributed hydrogen production.
  • Promote the use of electric mobility for cars and local buses, and hydrogen for long-haul trucks and interprovincial buses.
  • Develop seasonal hydrogen storage and fuel cells for electricity supply, particularly to meet stringent emission reduction targets.

How does green hydrogen production align with Chile's renewable energy potential?

Chile's significant renewable energy resources, particularly in solar and wind, provide a strong foundation for green hydrogen production. Leveraging these resources can lead to cost-effective hydrogen generation, supporting both domestic energy needs and potential export opportunities.

What are the environmental benefits of adopting green hydrogen in Chile's energy sectors?

Integrating green hydrogen can significantly reduce greenhouse gas emissions, particularly in hard-to-abate sectors like heavy transportation. This adoption aligns with Chile's commitment to becoming carbon-neutral by 2050 and enhances energy security by diversifying the energy mix.

What challenges might Chile face in implementing green hydrogen initiatives?

Challenges include the need for substantial investments in renewable energy infrastructure, development of efficient hydrogen storage and distribution systems, and the establishment of regulatory frameworks to support hydrogen integration. Addressing these challenges requires coordinated efforts between government, industry, and stakeholders.