March 19, 2021
Foreign Trade

Chile signs green hydrogen export memorandum of understanding with Europe’s largest port

Chile signs green hydrogen export memorandum of understanding with Europe’s largest port
The agreement will be key for the development of this new hub in Chile as Rotterdam is the largest port in Europe and handles approximately 13% of the continent’s total energy demand.

Energy and Mining Minister Juan Carlos Jobet announced new progress in the implementation of the National Green Hydrogen Strategy, which will allow Chile to position itself as a global leader in what is known as the energy of the future. Together with officials from the Port of Rotterdam, he signed a historic initial Memorandum of Understanding (MoU) for the exportation and importation of green hydrogen.

The agreement will be key for the development of this new hub in Chile as Rotterdam is the largest port in Europe and handles approximately 13% of the continent’s total energy demand.

The Energy and Mining Minister said, “This is excellent news for Chile and the world. The port of Rotterdam will be the port of entry for hydrogen produced in our country for European markets. We will also be contributing to decarbonizing nations that share our goal of becoming carbon neutral but do not have the strategic and natural conditions that Chile has in order to achieve it.”

This announcement and the other progress that has been made are shaping the first phase of this strategy - which is focused on local consumption - and laying the groundwork for the second phase: exportation.

The agreement will allow for the establishment of an international supply chain for Chilean green hydrogen and joint efforts to study regulatory, trade, technological, labor and other issues.  

It is important to note that the Port of Rotterdam is located in a part of Europe that consumes much more energy than it can generate locally from renewable sources. For this reason, Minister Jobet added, “Europe has to import large quantities of hydrogen in order to achieve its goals of carbon neutrality. And Chile will be a key partner in the Port of Rotterdam’s efforts to become Europe’s hydrogen hub.”

The Port of Rotterdam

The Port of Rotterdam is a European energy hub that handles approximately 13% of Europe’s total energy demand. It is a multi-energy port by nature, working with major oil and gas companies. It also has a port community comprising over 3,000 companies that provide fuels and other materials both within its industrial zone and for final clients located elsewhere.

In the agreement, port officials state that hydrogen is one of the priorities of Rotterdam’s Green Transition plans. The port is working to establish the infrastructure and facilities and to facilitate the flow of H2 through the co-investment and co-design of various large-scale projects.

Finally, it is important to note that the Port and the Energy Ministry will establish a dialogue regarding cooperative efforts to make one or several hydrogen export-import corridors between Chile and Europe viable.

Other international agreements

This agreement comes in addition to one signed earlier this month with the Energy Ministry of Singapore to study the technical and commercial viability of supply routes from Chile and Latin America to Singapore’s markets and to expand demand in Asian markets.

Minister Jobet notes, “We have two international agreements in place that will be key for hydrogen exportation to Asia and Europe. This has set an important precedent for reaching markets around the world.”