Steel Production in Chile to be Decarbonised with Hydrogen

Chile’s top producer of steel, CAP, has announced its plans to use green hydrogen in place of coal through the development of a green hydrogen pilot plant. Hydrogen Industry Leaders looks at how this project will contribute to the decarbonisation of steel production.

CAP’s pilot plant is backed by Chile’s Green Hydrogen Accelerator (H2V) initiative and the aim is to decarbonise the steel production that takes place at its facility in south-central Talcahuano city.

The pilot phase of CAP’s H2V project will run through 2025 and it is expected to generate 1,550 tons of green hydrogen.

In addition, it will also produce 25,000 tons of sponge iron or hot iron briquettes annually, both of which are key materials for steel mills. The project is expected to help to consolidate a green steel line by the year 2030.

Chile is aiming to produce the cheapest green hydrogen by the end of the decade and by 2040, the country wants to become one of the top three exporters of the clean fuel.