When people talk about green hydrogen, the conversation tends to focus on technology. They discuss electrolysers, renewable energy and the billions of dollars that this new market will generate. However, whilst reviewing the latest scientific literature, reports from international organisations and Chile’s own experience, a question arose that ultimately guided this entire research project: what really determines the success of a national green hydrogen strategy?

Chile boasts exceptional conditions. The Atacama Desert has one of the highest levels of solar radiation on the planet, and Patagonia boasts some of the world’s best wind resources. These advantages have placed Chile amongst the countries with the greatest potential to produce green hydrogen and contribute to the decarbonisation of sectors that are difficult to electrify, such as mining, heavy industry and maritime transport.

But the availability of extraordinary natural resources does not guarantee success.

The analysis carried out shows that the development of a hydrogen economy depends on many other factors, in addition to the availability of sun and wind. It also requires coherent public policies, institutions capable of coordinating multiple stakeholders, technological innovation, investment, infrastructure, the development of human capital, and a system of governance that enables economic development to be reconciled with the needs of local areas and their communities.

It was precisely from this perspective that I analysed Chile’s National Green Hydrogen Strategy. Rather than merely assessing its energy objectives, I was interested in understanding how public policy can become a tool for driving the energy transition, strengthening the country’s competitiveness and promoting a productive transformation based on knowledge and sustainability.

The results show significant progress. Chile has succeeded in developing a long-term strategic vision, gradually attracting international investment and consolidating an institutional framework that supports the development of this new industry. However, significant challenges remain: reducing production costs, developing transport and storage infrastructure, reducing technological dependence, managing water resources sustainably and increasing public acceptance of the projects.

Perhaps the main conclusion of this research is that leadership in the hydrogen economy will not depend solely on who produces the cheapest hydrogen. It will also depend on countries’ ability to transform their energy potential into institutional, technological and productive capacities that generate economic value, social well-being and sustainable development.

Because, ultimately, the energy transition is not simply a matter of swapping one energy source for another. It is about creating the conditions for a new development model that can simultaneously address the climate, economic and social challenges of the 21st century.

Advances and challenges of green hydrogen in Chile: a case study of the national strategy for sustainable energy transition by Rodrigo Barra Novoa (ANDEAN-LAB, Spain) is published in UCL Open Environment volume 8.

Rodrigo Barra Novoa holds a PhD in Economics from Camilo José Cela University (Madrid). He is a researcher, Director of ANDEAN-LAB, a Chilean think tank with a research office in Valencia, Professor at Florida Universitària—an institution affiliated with the University of Valencia and the Polytechnic University of Valencia—and an international consultant. He is an interdisciplinary researcher specialising in innovation, territorial development and science, technology and innovation policies. His current research focuses on the economy and the energy transition, sustainable mobility, digitalisation, business transformation and regional competitiveness, addressing the challenges of sustainable development in Spain and Latin America.

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