Anglo American to build green hydrogen hub in central Chile

Anglo American (LSE: AAL) has kicked off a program that aims to set a green hydrogen corridor in central Chile to accelerate the decarbonization of the country and transform the mining industry.

The projected hub, to be focused on innovation and new technologies, would involve building facilities in the Metropolitan region, where capital Santiago is located, and the Valparaiso coastal region. From there,  Anglo American would eventually ship the fuel abroad, it said.

Marcela Bocchetto, manager of climate change and biodiversity at Anglo American Chile, said the area was selected because the consumption of different energy sources, including natural gas and diesel, is quite high. 

She said that close to a third of the emissions generated by public and private transport are concentrated in that area, which has a population of more than 8 million.

Anglo American’s biggest operation in Chile, Los Bronces copper mine, is also located in the Metropolitan region, about 65 km from Santiago.

Chile’s National Green Hydrogen Strategy, adopted by the Ministry of Energy in 2020, argues that the top copper producing nation has the potential to produce the cheapest green hydrogen on the planet by 2030.

The sector, the government says, could make up about 10% of Chile’s GDP, similar to the mining sector’s contribution.

Anglo American has called on public and private actors to participate in a study that will also analyze possible applications of green hydrogen and existing obstacles to overcome.

A first-stage study will be conducted over four months with the support of the hydrogen technology unit of the Catholic University and international firms such as First Mode. This is the firm that developed the nuGen technology used in Anglo American’s first green-hydrogen fuelled mining truck, currently undergoing testing in South Africa.

The company already has in Chile an operational hydrogen generator for vehicles and mining processes, which that was installed in the area of Los Bronces’ Las Tortolas tailings dump.

The hydrogen generation plant operates with reused and demineralized water from Anglo American’s mining operations and draws energy from two solar plants located on the same premises, which have total generation capacity of 186 kW.

Anglo American expects the project will pave the way for the creation of public policies promoting a green hydrogen industry, which could eventually surpass copper as Chile’s biggest export.

There are currently more than 70 projects under study or development in Chile involving green hydrogen.

The mining ministry estimates that investments in the clean energy will surge from a projected US$45 billion in 2030 to US$330 billion by 2050.