McKinsey& CompanyChilean HydrogenPathwayFinalReportDecember2020CONFIDENTIALANDPROPRIETARisstrictlyprohibited
Table ofcontentsChapterPageChaoter1:State of alobal Hydrogen industryPage3-28Chapter2: Business case fordomesticHydrogenPage 29-50production and end use apolicationChapter3:BusinesscaseforHvdroaenexportationPage51-56Chaoter4: Hvdrogen industry development targets andPage57-60roadmapChapter5: Relevant stakeholders for the hydrogen industryPage61-73Chapter 6: Government role in hydrogen industryPage74-83developmentMcKinsey&Company
Chapter 1. State ofglobal Hydrogen industryChaptercontentState ofthe alobal Hydrogen industry, including: production, transportation, distribution anddescriptionutilization ofHydrogen (specific focus on Green Hydrogen,Development of hydrogen market, including: hydrogen projects and investment analysis bykeymarket and segmentof the hydrogenvaluechainRoadmaps and strategiesforhydrogendevelopment in key marketsincludingkeystrategic initiatives,incentivemechanisms and otherforms of oublic sunoortActivitiesActivityincludedActivityMcKinsey&Company
1.1/ Blue and Green hydrogen are two low-carbon productionmethodsofH2 with the highest future potentialCO2emissionskgCO2perkgH2producedLow-carbon H2GreyBlueGreenCCQH2H2H2ProductionSplit'natural gasSimilarto Grey but aditionally capture,Spltwater into H2 and Q2in an electrolyzer thatprocessinto H2 and CO2potentiallyuse, and storeCO2MostCO2AssumingGreenstoredInvestmentsLarge scale, one-offacilitiesLarge scale andone-offailitiesSmall-scale(5-10MW)facilities that can beand complexityRequiring triple-digitmillionRequiringtriple-digitmnEURCAPEXperfacilityRequiringsingle/double-digitEURmnCAPEX,EURCAPEXperfacilityper facility, expecting50-70% reduction until 20303-5yearsEPC5-10+yearsEPCduration,contingentupon1-3yearsEPCdurationdevelopment ofCO2 storagesiteDirect linktoXpower sectordlead to anemissionintensity of-40kgCO2/kgh2McKinsey&Company
1.1/ Blue H2 is cheaper today, but Green H2 is the new solar ' withcosts decreasing rapidlyGlobal H2 demand and production coststLeast-costoption2ndleast-costoptionHighgatGreyBlueGreenGlobalH2ThereofThereofProductioncostGreyH2Blue+GreenH2GreyH2BlueH2GreenH2demandMtp.a.Mt p.a. (Share%)Mtp.a$/kg$/kg$/kg20187373（100%)~1.0-2.5-1.5-3.04.32030110Upto37~1.0-2.5D-1.5-3.02.0205054573+1-X(<20%)Upto4721.3dPPAs)in202McKinsey&Company
1.1/ TheGreen H2 production relies on carbon-free power generationand electrolyzers which split water H2 and an O2 biproductBlueH2Existingsogment:UsingGreyH2Byproducts:SulfurCo,C02,steam,heatSellingH2asindustialfeedstock?H2compressionSMR/ATRsngments:PotentaluseofH2todecatbonizeDUECO2GreenH2SellingH2totransportindustry吧B·UISellingH2toindustryforSellingH2to heat andH2gridorblendingintogasindustrial heat processespower homesByproduct:02Carbon-freeElectrolyzerH2Shipping(liquidH2)SellinglusingH2tofuelgasliquiferplants
1.1 Hydrogen's value chain is decomposed into production ( greenor not),handling and final use (across several verticals)Reforming/gasificationoffossilfeedstockOther techniquesProductionIthegridmass gasificationtechniques)Petroliquids or coal gasi...
