Enap of the future

Decarbonization Plan

ENAP has the capacity and strategic position to be a relevant player in the national energy transition and to participate in the development of low-emission fuels. Furthermore, it is the leading actor in the storage, transportation, and distribution of fuels in the country.

For this reason, ENAP continues working to consolidate the development of new, cleaner energy sources, in collaboration with various alternatives. It also has significant potential to accelerate the decarbonization of the country, thanks to its logistical capabilities. An example of this is its infrastructure development plan for the green hydrogen industry and its derivatives in the Magallanes Region.

Relevant Strategic Role

ENAP plays a clear strategic role, particularly in the Magallanes Region. To fulfill this role fully, it must reconfigure its facilities to capitalize on its position in the fuel supply logistics chain in the area and develop new businesses in the green hydrogen industry and its derivatives.

However, green hydrogen requires logistical discussions to establish plants for producing ammonia or synthetic fuels that can be exported.

This industry entails higher productivity, environmental, and employment standards in the Magallanes Region, adding value to ENAP's assets in the area, which are critical for the logistics chain of this new industry.

Commercial Agreements for Synthetic Fuels

In recent years, ENAP has signed several commercial agreements with different developers to promote the industry of green hydrogen and its derivatives.

For example, ENAP and HIF Global signed an agreement that will accelerate the development of e-Fuels in Chile. This signing updates prior agreements between the two companies and opens the possibility for ENAP to join as a shareholder in HIF’s e-Fuel production projects in Magallanes. It will also allow the development of a project to facilitate everything from the unloading of equipment to the export of final products and define a business model for the company to commercialize carbon-neutral fuels.

This agreement is especially valuable in the global context of emission reductions and increasing future demand for clean energy production.

Projects

Of the initiatives promoted by ENAP associated with the Infrastructure Enabling Plan in the Magallanes Region, in this area, the following stand out for their level of progress:

• Reconfiguration of the Laredo dock.
• Development of a new industrial complex in Gregorio.
• Green hydrogen plant at Cabo Negro.

Regarding the Laredo maritime terminal, the goal is to adapt the existing infrastructure to make it functional for the development of the green hydrogen industry, enabling the import of equipment and components.

At the same time, ENAP is promoting the development of a logistics hub in San Gregorio for future green hydrogen and derivatives projects in the Magallanes Region, to facilitate the production and commercialization of this fuel and its derivatives. Some of the existing progress includes the development of conceptual engineering, environmental baseline studies, and the design of port alternative with requirements for product unloading and loading.

Lastly, in April 2024, ENAP announced the awarding of the construction of its first green hydrogen plant, located at the Cabo Negro complex. The plant aims to produce green hydrogen using renewable energy from the Vientos Patagónicos wind farm (in which ENAP is the majority shareholder), with the goal of producing the first molecules by the end of 2025. The plant will have a capacity of 1 MW (1,000 kW), which will be used for electric vehicle charging stations and to supply the fractionation plant at Cabo Negro, among other applications. With this plant, ENAP hopes to gain knowledge and experience in hydrogen production and use in the Magallanes Region, as part of its strategy to develop new fuels.

electrolysis, storage, a charging station, and a detailed training plan for the company's workers, among other aspects. ENAP will be the first company to produce green hydrogen as a final product in Magallanes, and it represents a significant step in reaffirming its objective to be the most relevant actor in accelerating Chile's energy transition, through the continuous development of better fuels.