Chile Launches $2.8B Green Hydrogen Tax Credit to Propel Clean Energy Investment

Chile is stepping up in a big way with a bold new move: a $2.8 billion tax credit program aimed at giving its green hydrogen industry the push it needs to hit the gas. The goal? Break the logjam on several approved projects that have been stuck waiting for final investment decisions.

Fueling the future with green hydrogen

This new plan is part of Chile’s Green Hydrogen Action Plan 2023–2030, and it’s all about moving from potential to progress. The tax credits—capped at $5 per kilogram—are designed to make construction and rollout of hydrogen production inside the country a whole lot faster. Think of it as financial rocket fuel for an industry that’s ready to take off.

Backing it up with serious support

On top of the credits, Corfo and the Treasury are backing a publicly funded infrastructure package to support this green shift. Energy Minister Diego Pardow didn’t mince words—he called the initiative a make-or-break moment for Chile’s climate action game plan and long-term economic growth. There’s also real emphasis on building out infrastructure to support the sector for the long haul.

Big players, big opportunity

Heavyweight projects like TotalEnergies’ $16 billion H2 Magallanes are first in line to reap the rewards from this new framework. More than just a boost for balance sheets, the plan is also aimed at bringing new life to regions like Magallanes by creating skilled jobs, driving industrial decarbonization, and encouraging innovation in electrolysis and clean fuel technologies.

Chile aims to lead the clean energy race

This move isn’t just about national goals—it’s strategically positioning Chile as a key global player in the fast-growing markets for green hydrogen and clean ammonia. With the right level of investment and international cooperation, Chile could be setting the standard for what a clean energy powerhouse looks like.