Executive Viability Abstract
This feasibility study evaluates the development of a large-scale Green Hydrogen production facility in Northern Chile, leveraging the world's highest solar irradiance in the Atacama Desert. The project aims to produce hydrogen via PEM electrolysis for domestic industrial use and international export, capitalising on Chile's national strategy to become a global leader in low-cost clean energy by 2030.
Return on Investment
18.5%
Payback Span
7.2 years
Net Present Value
$162,400,000
IRR Index
15.8%
## Executive Summary
Chile possesses a unique competitive advantage for green hydrogen production due to its exceptional solar resources. This study outlines the technical and economic viability of a 200MW solar-to-hydrogen plant.
## Market Analysis
The global demand for green hydrogen is projected to grow at a CAGR of 45% through 2030. Chile's 'National Green Hydrogen Strategy' targets an electrolysis capacity of 25 GW by 2030. Key markets include the European Union and Japan, where decarbonization mandates drive high premiums for certified green fuels.
## CAPEX Summary
Total estimated investment: $450 Million USD.
- Solar PV Plant (350MWdc): $180M
- Electrolyzer Stack (PEM, 200MW): $160M
- Storage & Compression: $50M
- Balance of Plant (BoP) & Desalination: $40M
- Contingency: $20M
## Revenue Model
Revenue is generated through long-term Power-to-X offtake agreements (OPAs) with mining conglomerates and international maritime fuel suppliers. Projected Levelized Cost of Hydrogen (LCOH) is $1.80 - $2.20/kg by 2027.
## Financial Projections
Annual revenue is estimated at $85M based on a production rate of 35,000 tonnes per annum. EBITDA margins are expected to stabilize at 35% after the third year of operation.