German e-fuels firm Ineratec has teamed up with a Chilean consortium to advance a potential green hydrogen-based fuels plant in the country’s Biobio region.
The parties will conduct feasibility studies aimed at validating the use of carbon dioxide from industrial processes and green hydrogen to produce sustainable fuels.
Comprising forestry firm Arauco, energy company Abastible, and multi-utility conglomerate Copec, the Chilean group will work with Ineratec to explore setting up power-to-liquid (PTL) plants in the region.
The feasibility studies would build on a basic engineering study that the German company has already undertaken.
Current designs locate the plant in Arauco’s Biobio industrial complex, from which it would use biogenic CO2 captured from the company’s operations and green hydrogen produced locally by Abastible.
Copec stands to provide expertise in fuel logistics and downstream applications.
Specific timelines for a final investment decision, as well as details on the plant’s potential output and price tag, are yet to be revealed.
The project has received undisclosed funding from Chile’s development agency (Corfo), which recently issued $10m to two projects aiming to underpin demand for 1,300 tonnes of green hydrogen per year in trucking and chemicals across the Biobío region.
Chile recently pivoted its green hydrogen targets towards local consumption and export targets over ambitious production goals. The country is also targeting green hydrogen export volumes between 300,000 and 700,000 tonnes annually by 2035.
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