CHILE´sSTRATEGYFORCLEANENERGYANDMOBILITY

SOLARENERGY–LITHIUM–HYDROGEN

MarcelaAnguloG,Dr.Ing.HeadofTechnologicalCapabili;esDivisionCORFO–ChileanEconomicDevelopmentAgencyMay2017

OurMissionistoimprovethecompe;;venessandtheproduc;vediversifica;onofthecountrybyencouraginginvestment,innova;onandentrepreneurship,strengtheninginaddi;onthehumancapitalandtechnologicalcapabili;estoachieveasustainableandterritoriallybalanceddevelopment.

•Innova;ongrants•R&Dcontractresearchgrants

•R&Dtaxincen;ve

•SeedCapital•Incubators•Co-Works•StartUpChile

•GuaranteesforfinancingSMEs

•PE&VCFunds•EarlyStageVCFunds

•SMEsprograms•Laborskills•SmartSpecializa;onprograms

•Technologycentres•R&DConsor;ums•Techtransfer(TTOsandHubs)

THEECONOMICDEVELOPMENTAGENCY

since1939

CLIMATECHANGE:ADRIVERFORINNOVATION

ELECTROMOBILITY

§  By2035therewillbeanannualproduc;onof20-40millionsofelectricalvehicles.

§  Increasingdemandoflithium.

§  Thiswillrequireaddi;onal2-4millionstonsoflowemissioncopper(10-20%ofworldproduc;on).

HYDROGEN

•  Currentlyonly5%ofH2produc;onisbasedonelectrolysis.

•  TheCAPEXforelectrolyzersisforeseentodecreasetoUSD5.000/kWby2020.

•  Germany,Japanandothercountriesarelookingforoverseassupplyofzero-emissionhydrogen.

SOLARENERGY

•  LastpowerpurchasebidingprocessinChile(nosubsidies):PV~30USD/MWh;CSP~63USD/MWh

•  Technologydevelopment(PVforhighradia;on,storagewithlithium/moltensaltsforCSP)couldreducethecombinedLCOEPV/CSPto50USD/MWhin2025and40USD/MWhin2035.

AUNIQUEOPPORTUNITY:GLOBALTRENDS+LOCALSINGULARITIES

OpportuniHesforChile

§  Globaltrend:exponen;al

growthofelectromobilityandhydrogen-basedeconomy

§  At2030therewillbe20-40millionsofelectricalvehicles.

§  Itwillneedaproduc;onofaddi;onal2-4millionstonsoflowemissionCopper(10-20%ofworldProduc;on).

AtacamaDesertsingulariHes

§  Highestsolarpoten;al>3.500kWh/m2>3.000sunhours/year

§  Biggestmetallicminingdistrictintheworld

§  StrongposiHoninnonmetallicmining-1rstinlithiumproduc;onandnaturalnitrates(energystorage)

World'slargestlowemissioncopperproducer

World'sleadinglithiumproducer

Chile:leadingsupplieroflithiumandlow-emissioncopperfortheelectriccarindustry

Longtermsupplyoflithiumcarbonate/hydroxide

(batterygrade)

Lithiumaddedvalueproducts

(cathodes,others)

SolarenergyforconHnuoselectricitysupply(mixPV/CSP)ataveragecostof50USD/

MWh

FossilfuelssusHtuHonHydrogenandSynteHcfuelsbasedoncirculareconomy

approach

INNOVATIONSTRATEGY:VISION2025

NATIONALSTRATEGYFORLITHIUMDEVELOPMENT

•  TheChileangovernmentownsthelithiumresourcesintheAtacamasaltflatthroughCorfo,theEconomicDevelopmentAgency.AlbermarleandSQMarecurrentlyexploi;ngthemineral.

•  Chileisexpandingtheproduc;oncapacitythrougharecentlysignedagreementwithAlbermarle(exRockwoodLithium).

•  Chilehasthelowestproduc;oncost(evapora;onofbrinesvsore).

•  Chileownsmorethan50%oftheworldreserves.

WorldLithiumReservesSource:STATISTA2016

Specializedlithiumindustry

. .

.

-  PromoHon-  InvestorAssistance-  A_ercare

-  Preferredlithiumprices-  SupplyAssurance

-  Pre-InvestmentSupportProgram-  IncenHves for technological

investmentIFI-  Guarantee-  R&DTaxIncenHve-  SubsidiesforInnovaHon-  CompeHHvene s s T r a i n i n g

Program

ContractCORFO-RLL:

CALLFORINVESTMENTINLITHIUMADDEDVALUEPRODUCTS

Callforexpressionofinterestforinstallingmanufacturingcapaci;esinChile–closesJune30.Roadshow:Frankfurt,Gemany;May18th

CALLFORINVESTMENTINLITHIUMADDEDVALUEPRODUCTS

Morethan170stakeholders

Gobierno

Sociedad Civil

Industria

Empresas eléctricas

Ciencia y Tecnología

1380HHworkshops

100INSTITUTIONS

Morethan50Ini;a;vesVISION

2025

TheChileanGovernmenthasdevelopedacollabora;veprocess through CORFO (Chi lean EconomicDevelopment Agency) and the Ministry of Energy todram a 2025 Roadmap called Strategic Solar Program,which includedpar;cipa;onbyover100government,corporate,academicandcivilsocietyen;;es.A common vision and a technology roadmap wasdeveloped.

SOLARENERGYPROGRAM2016-2025

INDUSTRIAL DEVELOPMENT TECHNOLOGICAL DEVELOPMENT REINFORCING QUALITY INFRACTUCTURE AND HUMAN CAPITAL FOR INDUSTRY

•  Openinnova;onplaoorm •  Innova;onchallengesfinancing•  High-techinvestmentaprac;onprogram

•  Photovoltaicsystemsfordesertapplica;on

•  Solarminingandmetallurgyprogram•  CSPandThermalenergystoragesystemprogram

•  Solardesalina;on•  Solarfuelsprogram•  Advancedhumancapitalprogram

•  Climatecharacteriza;on• Metrologicalnetwork•  Standards •  Conformityassessmentschemes •  Cer;fica;onoflaborcompetenciesprogram

SolarTechnologicalDistrict

SolarCorridor“CuencadelSalado”

ThisRoadmapseekstotakeadvantageoftheAtacamaDesert’suniquefeaturestodevelopana;onalsolarpowerindustrywithtechnologicalcapabili;esandexport-oriented.Tothisend,anini;alporoolioof50ini;a;veswasiden;fied,

withatotalbudgetofUS$800million.

SOLARENERGYPROGRAM2016-2025

Lithiumproducts

MetalmechanicIndustry

Watertreatment

PVmodulesassembly

SolarFuels

EnergyStorage

SolarMetalurgy

POTENTIALINDUSTRIAL

DEVELOPMENT

SOLARTECHNOLOGICALDISTRICT–1GWIntegraHonwithIndustrial-SymbioHcPark

•  Economiesofscale

•  Increasedlocalcontent

•  Technologymix,withfocusonimprovedCSP

ü  Metalurgiasolarü  Hidrometalurgiade

sulfurosprimariosyconcentradoscomplejos

ü  Usodecombus;bleslimpios/solares

CTS CTL

ü  Electricalandthermalsolarenergy

ü  StorageSystemsü  Solarapplica;onsin

metallurgyü  Fuels(H2)ü  Desalina;on

CTM

ü  Technologiesforsustainablelithiumextrac;onfromChileansaltflatsandincreasetheenvironmentalsustainabilityofsaltflats.

ü  Technologicaldevelopmentinthelithiumvaluechain,forrelevantusesinenergyandelectromobility

SOLAR MINING NATIONAL

TECHNOLOGY INSTITUTE

SolarTechnologyCenter LithiumTechnologyCenterMiningTechnologyCenter

SOLARMININGNATIONALTECHNOLOGYINSTITUTECurrentlyundercreaHon

•  R&D&i: own strategic lines with technologytransfermodels(saleorlicensing,spinoffs)

•  Pilo;ng and Technology valida;onservices

•  Broadtechnologicaldiffusionandextensionism

•  SpecializedTechnologicalServices

•  Trainingofadvancedhumancapital–inalliancewithUniversi;es

•  Contract Research and TechnologicalDevelopmentcontractswithIndustry

AREASOFSPECIALISATIONROLESANDSERVICES

Toadaptand/ordevelopsolarphotovoltaicpowertechnologiesthatrespondbepertotheuniquecondi;onsindesertandhigh-radia;onregionsintermsoftheirdurabilityandexpectedperformancethatlowersthelevelizedcostofenergytoatargetofUS$25/MWhby2025andplacingspecialemphasisonthedevelopmentandstrengtheningoflocalsupplierstocreateasophis;catedindustrialnetworkaimedatsupplyinggoodsandservicesinbothChileandabroad.

CallclosedMay16th,

2017

Source: Estudio Caracterización del Espectro Solar – Programa Solar

TECHNOLOGYCONSORTIUMFORPVTECHNOLOGIESADAPTEDTOHIGHRADIATIONINDESERTCLIMATES

ChilehascondiHonstobecomeaprivilegedsiteforzero-emissionhydrogenproducHon•  Solarenergyprices:PV/CSPataveragepriceof:

•  USD50/MWhby2025•  USD40/MWhby2035

•  Localconsump;onforminingandmari;metransport

•  Interna;onaldemand

HYDROGENPOTENTIAL

OverseasH2distribu;on

InfraestructuradeProducciónH2EnvecindadesdelaFaena

AbastecimientoyusoFinal

EnlaFaena

InfraestructuradeTransporteEnlaFaena

H2produc;onwithsolar/windenergy Domes;cH2distribu;on H2Finaluse

CallwillopenMay

2017

TechnologyConsorHumforpiloHngdualhydrogen-dieselcombusHonforminingtrucks

HYDROGENSTRATEGY2035

WELCOMEEUREKATOJOINTHISGLOBALOPPORTUNITY@CORFO