The recent Hyvolution Chile 2025 trade show, held in Santiago from September 2nd to 4th, underscored this ambition, bringing together approximately 4,500 participants and around 100 exhibiting companies. Since its inaugural edition in 2023, the event has established itself as the leading platform for promoting the sector in Latin America.

Chile's potential lies in its unique geographical predisposition for developing solar and wind power capacity, essential for H2V production. The national green hydrogen strategy clearly aims to position the country as a global leader in this clean fuel.

To support this objective, significant legislative progress is underway. The Finance Committee of the Chamber of Deputies recently began discussions on a bill to promote the green hydrogen industry . This bill provides for a transitional tax benefit of USD 2.8 billion , allocated through annual auctions to H2V producers, and a special, uniform tax regime for the Magallanes and Chilean Antarctic regions, due to their strong renewable energy potential. These incentives aim to stimulate investment and, above all, domestic demand in order to strengthen Chile's role in the global energy transition and to make H2V a tool for industrialization and decarbonization for local industry in various regions of the country.

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Proof of the sector's dynamism, Hyvolution Chile 2025 also witnessed the formalization of concrete public-private partnerships. A prime example is the alliance between the HidroHaul Technology Program (supported by Corfo, IEE, Mining3, Marval, Walmart Chile, and Copec) and RBU Santiago, which will lead to the development of the first semi-trailer truck powered by green hydrogen in Santiago. This bus will be fueled by the green hydrogen plant at Walmart's distribution center in Chile.

Several large-scale industrial projects currently underway were also discussed:

Despite this momentum, the Hydrovolution Chile 2025 discussions highlighted major challenges. Key obstacles include the need for greater agility in obtaining permits , often a critical point in Chile. The sector is also calling for more attractive energy prices and increased infrastructure investment, suggesting better shared use or the creation of hydrogen clusters, similar to what is being done in Brazil. The territorial redistribution of industry benefits and the engagement of local communities are also crucial for the success of projects.

A significant point of contention concerns the proposed new tax regime. While the bill aims to stimulate domestic demand, stakeholders such as TotalEnergies H₂ and ENAP have expressed concerns. They fear that the planned tax could become a hindrance, particularly for export-oriented projects in regions like Magallanes, where local consumption is virtually nonexistent. Some stakeholders would prefer other types of incentives rather than additional taxes to maintain Chile's competitiveness on the international stage. Time-to-market is another area where Chile needs to improve to remain competitive.

Chile is at a strategic crossroads for the development of its green hydrogen industry. With a favorable policy framework , significant tax incentives, and a strong industrial commitment, the country has the assets to achieve its ambition of global leadership. However, streamlining permitting processes, implementing a stable and competitive tax policy, and strengthening collaboration between the government, businesses, and communities will be essential to transforming this potential into a sustainable economic reality that benefits all regions of the country. A commitment to human capital development, as demonstrated by Franco-Chilean cooperation, is also a key factor for the long-term success of this strategic industry.