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Promoting renewable energy and green hydrogen projects in the North

Two projects in Tarapacá promise to create more than 3,200 jobs for their construction.

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In Tarapacá, several projects related to renewable energy and green hydrogen are being promoted, which promises to be an important economic engine and employment generator for the region. Currently, the management of the Ministry of National Assets is focused on reactivating the economy and has participated in the Interministerial Council of the National Green Hydrogen Strategy, where 16 projects have been considered nationwide. In the region, there are three onerous concessions in process, specifically in the Patache area, which are in the fiscal appraisal stages: one from CVE Project 51 and two from GH Energy. Employment. The Minister of National Assets, Marcela Sandoval, emphasised that the main objective is to boost the regional economy through these projects, which are expected to generate a significant number of new jobs. The first initiative, CVE Project 51, could create around 1,700 jobs during the construction phase and 500 direct and indirect jobs during operation. Meanwhile GH Energy is expected to hire 1,500 workers during construction and 260 in the operational phase. Overall, a total investment of approximately USD 4.3 billion is expected between the two projects. These projects have large power generation targets: CVE Proyecto 51 SpA is committed to installing at least 25 MW of operational electrolysers by 2030, with the possibility of expansion as the project progresses. On the other hand, GH Energy S.A. has plans for an installed capacity of 454.25 MW of electrolysers, which would translate into a combined contribution of 479.25 MW. Both projects are in the tax appraisal stage, after which they must be reviewed by the Special Disposal Commission, which is a regional, collegiate, independent body with specific competence, whose function is to determine exclusively the commercial value of the fiscal properties being disposed of, also including onerous concessions,’ the minister clarified. She added that these onerous concessions have a term of 25 years and more, depending on the project. The ministry is currently analysing the mechanism to develop new processes to promote this type of industry on public land. Sandoval explained that these processes will be consistent with the timelines and projections that will be obtained with the publication in April 2024 of the 2023-2030 Action Plan, which is being developed by the Ministry of Energy and which had its public consultation in February 2024. This Action Plan will set the roadmap for the deployment of the industry, reconciling economic development with respect for the environment, territory and communities,’ he said.

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