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Colbún Inaugurates Chile's First Green Hydrogen Plant Associated with Power Generation Facility

Last Updated on Oct 27, 2025, 05:30 PM IST
Colbún Inaugurates Chile's First Green Hydrogen Plant Associated with Power Generation Facility

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Colbún, Chile's electric power generation and energy solutions company, has inaugurated the country's first industrial green hydrogen plant at its Nehuenco power generation facility in Quillota. The milestone project represents a USD 1.6 million investment and marks a significant step in Chile's transition to clean energy technologies.

Plant Technical Specifications and Operations

The new green hydrogen facility operates as an off-grid system, meaning it is not connected to the electrical grid. The installation integrates multiple components, including a 100 kW solar park, batteries, an electrolyzer, and hydrogen storage tanks. The plant generates green hydrogen using photovoltaic energy to replace the gray hydrogen previously used in the facility's cooling processes.

The Nehuenco thermoelectric complex, which can supply energy to more than 570,000 homes, routinely uses hydrogen in its generators' cooling systems. Previously, the facility relied on gray hydrogen, which produces polluting emissions because it is made using fossil fuels. The new green hydrogen plant will eliminate these emissions from the cooling process.

Environmental Impact and Modernization Strategy

The green hydrogen plant will enable the replacement of gray hydrogen and reduce CO2 emissions by up to 15 tons annually. This project forms part of Colbún's broader strategy to modernize and adapt the Nehuenco Complex, which has been operating since the early 2000s, to provide the security and flexibility attributes required by the electrical system to complement the intermittency of solar and wind renewable energies.

The company has implemented several improvements at the facility beyond the hydrogen plant. These include investment in a Reverse Osmosis Plant to reduce water consumption during periods of water scarcity, a major maintenance program to provide greater efficiency and operational flexibility, and the recent approval of an Environmental Impact Declaration that will involve an investment of almost USD 18 million in making its generating units more flexible while increasing installed capacity and achieving more efficient water use.

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Government and Industry Leadership Response

José Ignacio Escobar, CEO of Colbún, stated that the company is convinced this type of technological development will continue advancing in the country. "The true impulse for the progress of new technologies lies in diversification, where the advantages of each complement each other. Sustainability must be environmental, social and economic, and also generate value and opportunities for everyone," Escobar said.

Escobar thanked the various stakeholders who supported the project, including the Colbún team, Corfo's support, regional authorities, and, particularly, the Quillota community. "For us, it is an honor to be able to be in this region," he noted. José Orrego, Presidential Delegate of the province of Quillota, attended the ceremony among more than 100 attendees and emphasized the project's importance within President Boric's government policy.

"This milestone of the first green hydrogen plant in a generation plant in Chile is very important in the policy that President Boric's government has. Advancing in renewable energies is a challenge, for example, recently it was announced that the city of Copiapó will be the first in the country with only electric transport, so this type of initiative puts us at the forefront worldwide in the use of renewable energies," Orrego said.

Regional Energy Strategy Context

Anastassia Ottone, Regional Secretary of Energy for the Valparaíso Region, commented that the project represents more than just an advance in clean energy generation. "This project not only represents an advance in clean energy generation, but also symbolizes our country's capacity to lead the green hydrogen revolution worldwide. With our Green Hydrogen Action Plan 2023-2030, we have drawn up a roadmap that seeks to harmonize economic development with respect for the environment and communities," Ottone stated.

The inauguration ceremony featured regional government officials and industry representatives, highlighting the project's significance within Chile's broader renewable energy transition strategy. The facility demonstrates the practical application of green hydrogen technology in industrial operations and sets a precedent for similar installations nationwide.

Colbún had previously implemented green hydrogen technology in 2024, when the company installed the first green hydrogen plant at an electric power station in Peru, enabling the replacement of 100% of the gray hydrogen used at the Fenix thermoelectric installation with green hydrogen. This prior experience contributed to the successful implementation of the Chilean facility at Nehuenco.

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