The green hydrogen industry in Antofagasta: Opportunities and challenges for regional development

The green hydrogen industry enjoys unprecedented momentum, which implies opportunities for some countries in the Global South, including Chile. Given the low costs of solar energy, the region of Antofagasta could become a node of the new industry. The article analyses whether the future production of green hydrogen is an opportunity for regional development. The conceptual framework of 'linkages'is applied, taking forward and backward production linkages, ties between different sectors, dynamics of local consumption and fiscal effects into consideration. Against the backdrop of 19 semi-structured interviews and information from secondary sources, the author explains that there are prospects, but regional development also faces barriers. Whereas the green hydrogen industry in Antofagasta will benefit from horizontal linkages with the mining sector, backward and forward linkages are not guaranteed. It is doubtful that many jobs will be created in the long run. Additional tax income will be shared with the other regions of the country. The author stresses that processing of hydrogen and the integration of service providers into the new value chains are decisive for achieving positive results at the regional level.