Chile turning up the heat on thermal energy decarbonization

Decarbonization of heat is shifting further into the public-private spotlight in Chile.

The burning of diesel, gas and biomass to create heat is a major source of emissions in the industrial, commercial and residential sectors of Chile, a country that has committed to achieving net-zero by 2050. 

More than 35% of energy consumed in Chile relates to thermal applications, such as heating water for production processes. Biomass, gas and diesel are the chief fuels.

Chile's renewables sector, along with decarbonizing the grid, champions clean solutions, such as thermal batteries and distributed solar thermal installations, and now a new initiative is emerging.

The four-year scheme – branded 'Accelerating the transition to a net-zero, nature-positive economy in Chile' – is designed to strengthen institutions, policy and regulations to spur the country's energy transition while protecting or restoring biodiversity.   

The initiative is being led by the energy, environment and finance ministries, and public-private development and innovation foundation Fundación Chile is carrying it out. Chile was among four countries in Latin America selected to develop national projects under the banner of the UN program Net Zero and Nature Positive Accelerator. The Global Environment Facility – a family of funds for the environment – is injecting US$4.8mn and the ministries US$37.1mn. The others are Mexico, Costa Rica and Trinidad & Tobago. 

Among the objectives is developing a roadmap for the decarbonization of energy demand, targeting thermal energy in particular. 

"Given the enormous advances in clean energy generation in Chile, the project seeks to advance in the decarbonization of thermal energy," the energy ministry's sustainable energy division chief, Julio Maturana, said at a launch event on Thursday.

Private sector representatives said large firms were advancing along the highway and that a challenge was incentivizing and encouraging smaller players – who constitute the bulk of companies in Chile – to follow suit. 

The initiative's scope also encompasses financing, environmental footprint certification, water-use efficiency, agriculture, forestry, fish-farming, green hydrogen, investment project development and pilot projects, the latter due to be carried out in three regions – to demonstrate viability – within sectors where deployment on a wider scale could have a significant decarbonization impact.

Fundación Chile executive president Pablo Zamora said the pilot project development work will involve the government, industrial associations, research institutions and technology firms. A call for proposals is planned for projects that are aligned with the goal of decarbonizing energy demand. 

In terms of investment projects, these will be geared to SMEs that supply larger companies. On the sidelines, energy ministry undersecretary Luis Felipe Ramos told BNamericas that a task for government officials was project identification.

"Part of the work over these 48 months, via coordination with the three ministries, is agreeing on what these investment projects will be," Ramos said.

Meanwhile, in Chile's mining sector, research is being carried out in the sphere of thermal batteries and solar-powered systems for warming up liquid solutions used in electrowinning, a process that employs electrolysis to recover copper.  

Overall, the energy sector – chiefly industry and mining, transport and electricity – accounts for around 75% of emissions. 

A strong decarbonization push in the electricity generation sector is underway, as miners and other energy-intensive industries, such as data centers, also work to trim emissions. In mining, a challenge is decarbonizing trucks and off-grid operations, where diesel is used today for power generation. 

Among decarbonization initiatives targeting this sphere is a pioneering dimethyl ether alternative fuels project. The likes of miners could use the fuel to help trim the emissions of diesel-guzzling engines without major retrofitting. Miners are also considering trolley-assist and hydrogen fuel cell solutions. 

In terms of land transport, Chile is expanding its fleet of electric buses, with capital Santiago alone boasting more than 2,000 units, a tally expected to climb to around 4,400 next year. Other regions are introducing electric buses. A challenge is electrifying private transport, such as light and medium-duty vehicles.