Green Hydrogen in Magallanes: Hopes, Challenges, and Local Perspectives [Research trip 02/2025]
The first part of my research trip in February 2025 took me to the north. Afterwards, as part of my DecarboGraphies project, I traveled south to Punta Arenas with a short stopover in Santiago. Located in the far south of Chile in the Magallanes and Antarctica Region, Punta Arenas is a stark contrast to the Atacama Desert. For the second part of my research trip, dryness and heat were replaced by strong winds and cool temperatures. Magallanes is known for its relentless winds, which have not only shaped the region’s rugged landscape but also attracted international investors in recent years, eager to harness this energy for green hydrogen production aimed at export. Holding onto the car door against the forceful gusts became a daily routine—a small but constant reminder of the immense power that companies now seek to exploit.
For around two weeks I conducted research in Punta Arenas, speaking with government officials, NGOs, hydrogen companies, and local scientists. I also visited potential project sites in San Gregorio and Tierra del Fuego, near Porvenir, to gain a better understanding of the territory. Traveling through Magallanes, the scale of past and present extraction industries becomes strikingly clear. The harsh region has historically played an important role in maritime exploration and resource extraction. Today, it stands at the crossroads of another historical transition: the development of large-scale green hydrogen projects. While the region’s natural conditions seem ideal for wind energy production, discussions with locals reveal a landscape of uncertainty, concern, and unresolved questions.
A Historical Perspective: Magallanes and Resource Extraction
Magallanes has long been shaped by extractive industries. The indigenous Selk’nam and Yámana peoples were displaced and decimated by European colonization, which brought sheep farming, oil and gas extraction, and even small-scale gold mining. Some settlements, like Cerro Sombrero and Puerto Percy, were created solely for oil extraction. Today, Puerto Percy (see photos below) is completely abandoned, while Cerro Sombrero still hosts the national oil company ENAP. Though workers and company pickups are still visible, many buildings—including the church, school, and community center—stand empty, reflecting the boom-and-bust cycles of resource-dependent economies.
The Hydrogen Boom: Promise and Doubts
Currently, there are 5–6 major green hydrogen projects planned in the region. Some have already submitted environmental impact assessments, while others remain in a wait-and-see phase. Several companies have established local offices, and measurement towers dot the landscape. Despite these developments, local skepticism is high. One of the most frequently mentioned concerns is scale: the projects are enormous, requiring thousands of workers for construction over several years. Yet, Magallanes’ infrastructure is not prepared for this influx. Housing is already scarce, schools and hospitals are struggling, and ports and roads are underdeveloped for the transport of hundreds of massive wind turbines.
These challenges became particularly evident when I visited potential project locations in San Gregorio and Tierra del Fuego. Vast open spaces stretch towards the horizon, interrupted only by occasional estancias, clusters of sheep, or remnants of past industrial ventures. In conversations with locals, the skepticism was palpable. Many pointed to the arrival of previous extractive industries—oil, gas, industrial salmon farming—and questioned whether hydrogen would bring real benefits or merely repeat old patterns. Chile’s environmental governance allows for public comments and observations on environmental impact studies, but the overall approval process remains deeply neoliberal. Land agreements are negotiated between private landowners and corporations, with minimal state intervention. Given the historical concentration of landownership in Magallanes, this raises concerns about who truly benefits from these projects. While the renewable energy sector presents itself as a green alternative, the structural dynamics of resource extraction and land control remain largely unchanged. Activist groups argue that these projects will not only impact individual sites but reshape the entire region.
Magallanes has seen industries come and go, often leaving behind environmental and economic scars. The fishing industry, particularly industrial salmon farming, provides a more recent precedent—bringing jobs but failing to integrate meaningfully into the local economy. Some residents express a fatalistic outlook: "Nothing will change with green hydrogen."
The village of Porvenir has 6800 inhabitants. 2000 people work in salmon farming.
Green hydrogen in Magallanes: Final thoughts
Magallanes' winds have long carried explorers, industries, and development ambitions. Today, they fuel visions of a green hydrogen revolution. However, conversations on the ground suggest that history is repeating itself in familiar ways: top-down planning, uncertain benefits for local communities, and a lack of clear long-term strategies. As the region embarks on this new energy transition, the key question remains: will it be different this time?
On the last day of my stay, I took a detour to visit Torres del Paine National Park.