Chile plans to scale back its green hydrogen production targets due to weakening global market conditions, according to Energy Minister Diego Pardow. Speaking during Energy Week in Santiago, Pardow said that the government will officially revise its targets before the end of its current term in March 2026. He noted that the international enthusiasm for green hydrogen has waned, and Chile’s reduction will align with similar downscaling seen in European countries.

This move reflects a broader global trend where developers are either cancelling green hydrogen projects or reducing their investment commitments, as economic and logistical challenges cool earlier optimism. Despite this adjustment, Pardow highlighted that several commercial-scale green hydrogen initiatives in Chile have received or are close to receiving environmental approvals. Major players like TotalEnergies and HIF Global are still pursuing projects, and roughly $40 billion in hydrogen-related developments are under environmental review.

In a related issue, the government is considering whether to revoke a concession held by a unit of Italian utility Enel in Santiago. This follows accusations that Enel responded too slowly to a widespread power outage caused by a storm in 2024. However, no decision or timeline has been announced regarding this potential action.