Green hydrogen locomotive in Antofagasta: Sustainable future for mining or costly experiment?

In the arid landscape of northern Chile, a silent and clean train advances without emitting smoke or noise, marking a milestone in the Antofagasta region. This locomotive, operated by Ferrocarril de Antofagasta (FCAB), is a pioneer in Latin America by running on green hydrogen, a breakthrough that could transform mining and significantly reduce CO₂ emissions in an industry that, according to McKinsey & Company, contributes 7% to greenhouse gases.

Revolution in Mining or Just an Experiment?

This advancement, however, is not without challenges. Currently, the hydrogen used is transported from Brazil, raising costs and posing the question of whether this is a viable path towards more sustainable mining or just an expensive and localized experimental initiative.

Manufactured in China, the FCAB locomotive is adapted for the mining routes of northern Chile. Its hybrid technology of hydrogen fuel cells and batteries makes it lighter than diesel models, consuming less energy. Antofagasta plc thus seeks to reduce its carbon emissions, prioritizing the transport of minerals as a key objective in its decarbonization strategy.

David Fernández, general manager of FCAB, has pointed out the lack of local production of green hydrogen as a challenge, although the company opts to create demand in advance, assuming the associated risks.

The high cost of green hydrogen is another obstacle. While gray hydrogen costs between 1 and 2 dollars per kilo, and blue between 2 and 3 dollars, green, produced with renewable energies, ranges between 3 and 7 dollars. In Europe, it is practically impossible to produce it for less than 4 euros per kilo, making it still an expensive fuel compared to diesel.

The reduction in the costs of electrolyzers, especially in China, has been a ray of hope, with significant decreases in recent years, according to H2 Chile. This trend recalls the price drop experienced by solar energy.

In addition to the locomotive, other projects in Calama and Magallanes are exploring the potential of green hydrogen in mining and the production of green ammonia, although they face logistical and regulatory challenges.

The Chilean government has proposed a “Green Hydrogen Industry Promotion Bill” to encourage local demand through tax credits, following the example of similar initiatives in Europe.

In South Africa, Anglo American has introduced a hybrid mining truck powered by green hydrogen, which could revolutionize heavy transport in mining.

The mining of the future must be more sustainable, and green hydrogen offers a promising alternative. However, its massive implementation must avoid replicating past inequalities, as organizations and experts warn regarding exports from the Global South.

The FCAB locomotive symbolizes this change, although it still must prove whether it will be a decisive step towards a sustainable mining future or just an expensive anecdote. More about its first journey is available at Ferrocarril de Antofagasta (FCAB).