Executive Viability Abstract
This feasibility study evaluates the development of 1GW offshore wind capacity in Chile, primarily focusing on the Magallanes and Los Lagos regions. Given Chile's narrow continental shelf, the project emphasizes floating offshore wind (FOW) technology. The study identifies a high synergy with Chile's National Green Hydrogen Strategy, positioning offshore wind as a critical primary energy source for large-scale electrolysis and international energy export.
Return on Investment
12.8%
Payback Span
10.5 years
Net Present Value
$1.42 Billion USD
IRR Index
15.4%
## Market Analysis
Chile possesses some of the world's highest wind capacity factors, exceeding 60% in southern regions. The market is driven by the 'Plan de Descarbonización' which aims to phase out coal by 2040. There is an estimated potential of 965 GW of wind energy in Chile, with offshore contributing significantly to high-load consistency required for Green Hydrogen production.
## Technical Feasibility
The technical scope focuses on floating foundations (Semi-submersible) due to bathymetry exceeding 50 meters close to shore. Transmission remains the primary technical hurdle, requiring HVDC subsea cabling to connect southern generation to central demand hubs (Santiago) or local hydrogen hubs.
## Financial Projections
**Total Estimated CAPEX:** $3.5 Billion USD for a 1GW installation.
**OPEX:** $90 Million USD/year (including specialized marine logistics).
**Revenue Model:** Combination of 15-year Power Purchase Agreements (PPAs) with mining conglomerates and localized sales for Green Hydrogen synthesis.
## Risk Assessment
Key risks include regulatory gaps in maritime concessions for energy, potential impact on marine biodiversity (specifically whale migration routes), and the nascent state of the global floating wind supply chain which may inflate initial component costs.