Chile's Chamber of Deputies approved a bill to boost the green hydrogen industry, with 75 votes in favor. The initiative now moves to the Senate for review. The measure aims to strengthen the national strategy through tax incentives.
On Wednesday, Chile's Chamber of Deputies approved in general and particular the bill promoting the green hydrogen (H2V) industry, with 75 votes in favor, 22 against, and 10 abstentions. The proposal, which strengthens the National Green Hydrogen Strategy, includes two key measures to attract investments and promote sustainable development.
The first measure establishes a transitory tax benefit worth US$2.800 million, awarded through annual tenders to H2V producers. These funds can then be used by companies purchasing green hydrogen or its derivatives, such as ammonia or methanol, from those producers. The second creates a special and uniform tax regime to encourage the installation of production facilities in the Magallanes and Chilean Antarctic Region, leveraging the area's natural advantages for generating this clean energy.
Energy and Economy Undersecretary Álvaro García hailed the approval in a statement: “This is great news for Chile; the green hydrogen industry has extraordinarily large development potential for the country. Moreover, it contributes to decarbonizing the country and thus protecting citizens and our climate. We are taking a very important step forward to generate quality jobs across the entire national territory.”
Hacienda Minister Nicolás Grau highlighted the political continuity on the issue: “With this approval, we take another step toward the goal of making Chile a world leader in the green hydrogen industry, bringing more jobs, more innovation, and more investment. It is very important that the National Green Hydrogen Strategy was driven by President Piñera's government and continued by President Boric, because major productive efforts require continuity and a state vision.”
With this vote, the bill begins its second constitutional process in the Senate, where it will undergo review and possible amendments before becoming law.