Chile’s largest steel producer, CAP, is developing a green hydrogen pilot plant at its Huachipato unit in Talcahuano to reduce carbon emissions in steel production.
The company aims to replace coal with cleaner fuels like hydrogen in its blast furnaces. The Chilean Green Hydrogen Accelerator (H2V) initiative supports CAP’s tests, with the goal of producing 1,550 tons of green hydrogen and establishing a green steel line by 2030.
The pilot phase will run until 2025, generating 25,000 tonnes/year of sponge iron or hot iron briquettes, essential materials for steel mills. CAP will evaluate the current business model until 2029 to assess customer willingness to pay for green steel.
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Chile, the world’s leading copper producer, aims to produce the cheapest green hydrogen by 2030 and become a top-three exporter by 2040. Unrivaled renewable resources in Atacama and Patagonia offer the lowest-cost green hydrogen production, according to a 2020 McKinsey study.
