Opportunities and Barriers to Green Hydrogen Deployment in Chiles Domestic Markets

• Country: Chile
• Summary: Opportunities and Barriers to Green Hydrogen Deployment in Chiles Domestic Markets
• CLT Ref No: 51497528
• Deadline: 25 Mar 2021
• Financier: World Bank (WB)
• Purchaser Ownership: Government
• Tender Value: Refer Document
• Notice Type: Tender
• Document Ref. No.: 1273632
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• Description:
• Expression of Interest are invited for Opportunities and Barriers to Green Hydrogen Deployment in Chiles Domestic Markets. REQUEST FOR EXPRESSION OF INTEREST FOR SELECTION # 1273632 This Request for Expression of Interest is for a Firm Selection. Please log in as a valid Firm User if you wish to express interest in this selection. Selection Information Assignment Title Opportunities and barriers to green hydrogen deployment in Chiles domestic markets. Publication Date 18-Mar-2021 Expression of Interest Deadline 25-Mar-2021 at 11:59:59 PM (Eastern Time - Washington D.C.) Language of Notice English Selection Notice Assignment Country · CL - Chile Funding Sources The World Bank Group intends to finance the assignment/services under: · BB - BANK BUDGET · TF0B5327 - Green Hydrogen Development in Chile - Technical Assistance Individual/Firm The consultant will be a firm. Assignment Description SELECTION FOR CONSULTANTS BY THE WORLD BANK GROUP REQUEST FOR EXPRESSIONS OF INTEREST Electronic Submissions through World Bank Group eConsultant2 https://wbgeconsult2.worldbank.org/wbgec/index.html ASSIGNMENT OVERVIEW Assignment Title: 1273632 - Opportunities and barriers to green hydrogen deployment in Chiles domestic markets. Assignment Countries: - Chile ASSIGNMENT DESCRIPTION The objective of the proposed assignment is to support the implementation of the National Green Hydrogen Strategy of Chile by assessing the main opportunities, risks and challenges of green hydrogens participation in: (i) the liquid and gaseous fuel markets; (ii) medium-sized isolated power grids, and (iii) the making of specific recommendations on regulatory actions to be undertaken to accelerate this transition. FUNDING SOURCE The World Bank Group intends to finance the assignment / services described below under the following: - BANK BUDGET - Green Hydrogen Development in Chile - Technical Assistance ELIGIBILITY Eligibility restrictions apply: [Please type list of restrictions] INDIVIDUAL / FIRM PROFILE The consultant will be a firm. SUBMISSION REQUIREMENTS The World Bank Group now invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Consultants may associate to enhance their qualifications. Interested firms are hereby invited to submit expressions of interest. Expressions of Interest should be submitted, in English, electronically through World Bank Group eConsultant2 (https://wbgeconsult2.worldbank.org/wbgec/index.html) NOTES Following this invitation for Expression of Interest, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding. Only those firms which have been shortlisted will receive notification. No debrief will be provided to firms which have not been shortlisted. Attachments · Optional TOR File Qualification Criteria · 1. Provide information showing that they are qualified in the field of the assignment. · 2. Provide information on the technical and managerial capabilities of the firm. · 3. Provide information on their core business and years in business. · 4. Provide information on the qualifications of key staff. 1 The World Bank TERMS OF REFERENCE Consultancy Services for Technical Assistance Activity: Deep assessment of opportunities and barriers to green hydrogen deployment in Chile-s domestic markets: Definition of regulatory pathways to accelerate the energy transition. I. BACKGROUND In 2020, Chile updated its Nationally Determined Contribution (NDC) increasing its ambition - including an absolute mitigation goal, a maximum peak by 2025 and a carbon budget - and setting a firm commitment to achieve Carbon Neutrality by 2050. The Government of Chile (GoCl) is strongly committed to the development of green hydrogen industry, as a critical enabler to reach its goal of carbon neutrality and comply with its Climate Change Framework Law,1 while enabling a socially just energy transition. One outstanding measure of the updated NDC is the development of green hydrogen, which has the potential to represent up to 21 percent of the necessary greenhouse gas (GHG) emissions reductions by 2050. International studies have clearly delineated the high-level potential for green hydrogen to substantially meet energy needs globally: it could have the potential to provide for 18 percent of energy demand, representing a market of USD 2.5 trillion and support the creation of about 30 million jobs by 2050.2 Chile is prioritizing green hydrogen development to decarbonize its various energy intensive sectors and meet its NDC targets, as well as spur the creation of a new national clean industry that is aligned with the rebuilding back better in a post- COVID-19 recovery period. The GoCl published its National Green Hydrogen Strategy (Strategy) at the 3rd International Conference “Green Hydrogen Summit” held in November 2020. The Strategy builds upon the country-s commitment to become a carbon-neutral country, the high-quality and abundant renewable resources available in the country, and its demonstrated capability of enabling private investment to deploy large-scale clean energy projects on a competitive basis. This strategic policy sets ambitious global targets for the country, such as: (i) having 5 GW of electrolyzer capacity in development by 2025; (ii) producing the cheapest green hydrogen by 2030; and (iii) becoming one of the top 3 exporters of green hydrogen by 2040. To achieve these objectives, the Strategy delineates three phases: (i) 2020-2025 for a domestic ramp up and export preparation; (ii) 2025-2030 to consolidate domestic market and develop the export markets; and (iii) 2030 and beyond to export to global markets. 1 The Climate Change Framework Law is currently under discussion in Congress. 2 Hydrogen Council. (2020). Path to Hydrogen Competitiveness. Analysis supported by McKinsey&Company. 2 The comparative advantages of Chile for the development of a green hydrogen economy are evident throughout the hydrogen value chain and offer multiple opportunities for lessons learned and replicability. According to a recent study,3 Chile has a vast potential for green hydrogen production, of over 160 million tons per year,4 which correlates with over 1.75 TW of untapped renewable electricity generation potential mapped in the country. Chile can produce significant amounts of green hydrogen for domestic use and has the potential to become a competitive green hydrogen exporter. Chile-s export potential has been recognized by self-declared future importers of hydrogen,5 has been distinguished in international cooperation dialogues like the recently signed MoU with Singapore, and has been analyzed in several studies.67 These export markets could open economic opportunities estimated of up to USD 24 billion per year in revenues for Chile by 2050, which would create a new export sector that could be as relevant as the copper mining sector, the country-s largest industry. Although export markets show a large potential to incentivize investment and develop a large-scale green hydrogen production industry, establishing a strong domestic market is key to the long-term objective. The first phase of the Strategy, “Domestic ramp up and export preparation”, focuses on the development of a domestic market. The 6 large-scale applications proposed for the first phase are: (i) oil refineries; (ii) ammonia; (iii) mining haul trucks; (iv) heavy-duty trucking; (v) long-range buses; and (vi) blending into gas grids. Most domestic applications of ammonia are in mining and fertilizers. On the other hand, the other 5 large-scale applications are directly linked to fuels markets and fossil fuels replacement. To better understand the opportunities and challenges of green hydrogen-s participation in the fuels market, a deep dive in is required. Green Hydrogen and fossil fuels in Chile Green hydrogen plays a crucial role as a clean alternative to fossil fuels and to cut GHG emissions. It is essential to identify and analyze the plans, actions, and ideas of fuels companies in Chile regarding the energy transition to identify barriers and opportunities for green hydrogen. A successful development of green hydrogen-s domestic demand requires a deep comprehension of the fuels market, and the potential role that it could play in it. One of the most relevant users of fossil fuels is transport, specifically, on land transportation. In Chile, transportation accounts for 24 percent of GHG emissions, especially, road transport alone represents 21 percent of total GHG in the country.8 Regarding energy consumption, 3 Ministry of Energy of Chile & GIZ. (2014). Energías Renovables en Chile - El Potencial eólico, solar e hidroeléctrico de Arica a Chiloé. Available at: http://4echile.cl/4echile/wp‐content/uploads/2017/03/Energias‐Renovables‐en‐ Chile‐El‐potencial‐eolico‐solar‐e‐hidroele%CC%81ctrico‐de‐Arica‐a‐Chiloe.pdf. 4 International Energy Agency (2019). The Future of Hydrogen. 5 Germany and Belgium have expressed interest, although also to other emerging countries such as Morocco. 6 Gallardo, F., et al. (2020). A Techno‐Economic Analysis of on‐grid solar hydrogen production by electrolysis in the north of Chile and the case of exportation from Atacama Desert to Japan. International Journal of Hydrogen Energy Ma
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