Strategic partnership to meet local demand for green hydrogen
Chilean company Fastpack announced the formation of a joint venture with China's Guofuhee to establish an electrolyzer assembly plant in Chile. The project, called Hypack, represents a total investment of US$10 million and was selected by the Production Promotion Corporation (Corfo) as one of three initiatives to boost local manufacturing of this technology, essential for green hydrogen production.
The financing structure provides for 60% of the resources to be co-financed by Corfo, demonstrating government support for the development of the national production chain. The project's central objective is to achieve at least 40% national content in the parts used in the assembly of the electrolyzers.
Identifying market opportunities
Fastpack, a company specializing in the engineering and manufacturing of fluid transportation and storage systems, identified an opportunity in the green hydrogen sector about two years ago. According to María José Meléndez, deputy manager of the company's green hydrogen division, Corfo had identified specific problems in the market that were not being adequately addressed.
"Corfo identified unresolved issues in the market, such as excessive delays in delivering electrolyzers, high maintenance costs, and the lack of local capacity to operate them," Meléndez explained.
To find a solution, Fastpack conducted a year-long study and established contacts in Europe, the United States, and Asia. The process resulted in an agreement with Guofuhee, one of the world's largest electrolyzer manufacturers, which decided to invest in an assembly plant in Chile to meet growing local demand.
Production schedule and goals
The joint venture will create Hypack, whose corporate structure is still under negotiation. The established schedule calls for assembly to begin in 2027, with full production capacity to be reached by 2029.
The 40% domestic content target is a central element of the project. "We want at least 40% to be domestic," Meléndez stated, highlighting the intention to develop a local supply chain and reduce dependence on imports.
Other Corfo initiatives
The Fastpack project is not isolated. Corfo has selected other similar initiatives as part of its strategy to develop the green hydrogen industry in Chile, including complementary projects in different regions of the country.
José Miguel Benavente, Executive Vice President of Corfo, explained the strategy behind these calls: "This call arose from a market information request we made in 2023. Today, we are able to finance exploration contracts in different regions with state resources, covering both the north and south of the country."
Focus on industrial applications
The projects are geared toward specific industrial applications. "The focus is on developing electrolyzers for industrial applications, storage, and green hydrogen derivatives. Our goal is to meet the growing demand for new hydrogen production plants," Benavente explained.
This approach reflects the strategy of starting with segments where the economic viability of green hydrogen is most evident, before expanding to other applications.
Advantages of local production
The installation of local electrolyzer production capacity in Chile aims to solve three main problems identified in the market:
- Reduced delivery times: Local production eliminates long import times, allowing faster deliveries for national projects.
- Lower maintenance costs:Proximity facilitates maintenance services and reduces operating costs throughout the equipment's useful life.
- Development of local expertise: The presence of assembly operations in the country allows the development of specialized technical knowledge and training of local professionals.
Context of green hydrogen in Chile
Chile has positioned itself as one of the countries with the greatest potential for green hydrogen production due to its exceptional natural conditions for renewable energy generation, particularly solar power in the north and wind power in the south. The country has launched a national green hydrogen strategy that aims to become one of the world's three largest exporters by 2040.
Corfo's initiative to develop local electrolyzer production capabilities is an important element of this strategy, as this equipment is essential for the electrolysis of water using renewable energy, a fundamental process for the production of green hydrogen.
Perspectives for the sector
With operations scheduled to begin in 2027, the Hypack project will represent a milestone in the development of the green hydrogen value chain in Chile. The combination of Chinese technology with local production and national content could create a model for other countries in the region seeking to develop their own capabilities in the sector. The success of the joint venture between Fastpack and Guofuhee will depend on the ability to develop a chain of qualified local suppliers and effectively meet the growing demand for electrolyzers in the Chilean and regional markets.
