Chile’s government has put forward a US$2.8 billion tax credit bill to accelerate domestic demand for green hydrogen, ammonia and e-methanol. The scheme, running six auctions between 2025 and 2030, would provide tax relief linked to each kilogram purchased from new national projects, front-loading incentives to spur early adoption.

The bill also proposes a unified tax regime in Magallanes, the wind-rich region at the centre of several multi-billion-dollar hydrogen ventures. With more than US$40 billion in projects awaiting offtake certainty, the government hopes the measure will provide investor confidence and anchor demand before turning to exports.

Although elections later this year narrow the legislative window, the proposal enjoys rare cross-party backing and could set a model for other emerging hydrogen markets.