H2 New Strategy - Chile

Natalia Herrera
Project Development Director New Technologies
LATAM/America

November 2023
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1) Context / Scope of Work

Run a market study of the Chilean (domestic) consumption of the following products:

Group 1: Hydrogen & derivates

• Hydrogen, Ammonia, methanol and
urea
Group 2: DME / e-fuels
• DME, e-gasoline y e-kerosene
Group 3: Bio carbon products
• Carbon black, carbon active & biochar
Study of the main potential off-tackers, by product and
by region.
Demand estimation: Analysis of their actual
consumption and projection of consumption. Quantities
bought and at which price. Ranking of the most
interesting companies by product and by region, even
those that need to change their processes to become
an off-tacker.
Potential projects and Recommendations to start
developing a project.

Selected regions for the study

🞂 The study should be carried out in 12 regions of Chile, from Arica y Parinacota until la Araucanía.
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Main activities
For each group of products, the consultant company must study:
1) Company Identification
Potential off-tackers
🞂 1 s t P h a s e : The objective of
this task is to provide Mytilineos
with a database of the companies
that currently consume each/any of
the products of the 3 groups
previously mentioned at an
industrial level.
🞂 2 n d P h a s e : Provide a list with
companies that may or will
consume, in the future (e.g. 2030)
any product within of the 3 groups
previously mentioned. In this case,
those companies will consume those
products if they change their
processes.
2) Demand Estimation
Market Size
🞂 1 s t P h a s e : This work consists
of knowing the current consumption
(2024) of each group of products
and their potential domestic
demand in the future for a specific
year (e.g. 2030). At what price the
off-tackers buy and the quantities.
🞂 2 n d P h a s e : In this case of the
companies that may or will consume
those products if they change their
processes, quantify with 3 potential
scenarios the quantities that they
may consume in 2030 and at which
price.
3) Recommendations
Market Priority
🞂 1 s t P h a s e : This work consists
on advising Mytilineos which are the
most attractive products to start
producing in each studied region
and advise where to start a project
(at least recommend 5 options).
🞂 2 n d P h a s e : In this case, the
idea is to have a list with the most
interesting companies to accompany
them in their transformation of
processes in order to “create
demand” for the consumption of H2,
NH3, or other of the products of the
groups by 2030.
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Methodology
Identification of the most important companies from Arica y Parinacota to La Araucanía

ACTIVITIES

Company Data Base Creation

1. Identification of the applications of the different products at an industrial level. A minimum of 3 applications will be analyzed for each Group.
The following applications are examples of what could be analyzed:

➢ Group 1:
➢ Group 2: ➢ Group 3:
• H2: feedstock & mobility
• DME: replacement of LPG • Carbon black: low carbon cement
• NH3: fertilizers (urea – ammonium
• e-Gasoline: medium/heavy transport • Activated carbon: air, metal & water
nitrate) & refrigerants
• e-Kerosene: eSAF “Sustainable Aviation Fuel” purification, food industry decolorization
• MeOH: e-fuels & bunkering
• Biochar: soil enhancement, crop nutrition
2. Identification of the companies in the industrial sector (medium and large) that currently consume each of the products for the 12 selected
regions (from Arica and Parinacota to Araucanía).
3. Identification of companies in the industrial sector (medium and large) that could consume the products in the future, in a specific year (e.g.
2030).
4. Categorization of mapped companies belonging to industrial sectors. Characterization of companies with respect to their type of industry
(subsector), referential geolocation, size, final products and sales level

DELIVERABLES

🞂 Excel list with companies mapped in the 12 regions, for each product of the 3 groups.
🞂 Google Earth layers with georeferencing mapped companies .
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2) Demand Estimation

ACTIVITIES

🞂 Quantification of the potential demand for each product in a specific year (e.g. 2030). A calculation of the amount
of kt/year that will potentially be consumed for each of the products will be done. In the absence of available
information, approximations of product consumption may be used with the objective of estimating demand based
on available information.
🞂 Quantification of the current potential demand and in a specific year (e.g. 2030), for each product by region
considering a “bottom-up” approach based on national public information (e.g. SEC fuel sales report, balance of
energy from the Min. of Energy, importations data, etc.) public surveys, databases and other data sources.
🞂 For each region, at least 5 companies must be selected for interviews (it is expected to achieve at least 3
interviews per region). The information collected will allow the estimation of theoretical demand to be validated
(the next slide details some of the topics that could be discussed in the interviews).
🞂 Description and explanation of the main levers that can trigger product demand in each type of industry (e.g.,
regulation, competitiveness, decarbonization commitments, among others).
🞂 Estimation of the “effective” demand (less than the potential demand) for each of the products, considering the
levers of each of the analyzed sectors and information collected in the interviews. This “effective” demand would be
the demand into which Mytilineos could penetrate.

DELIVERABLES
🞂 Power-Point presentation with demand estimates for each of the products in English.
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2) Demand Estimation
The survey to be carried out on the selected companies, should at least contain the following information:

🞂 Company information: name, RUT, head quarters, address for geo-localisation, others.
🞂 Energy consumption: types of energies consumed by the company (either electrical or fuel), others.
🞂 Productive process of the company: final products (manufactured by the company), volume of production, chemical inputs used in
the production process, others.
🞂 Interest in new technologies: level/degree of interest/obligation in decarbonizing their processes and products; level of interest in
the new products of the 3 groups; know if the have internal goals to achieve (within the company) in decarbonizing their processes;
interest in becoming partners or if they have partners in a specific project.
🞂 Willingness to pay for clean products: price range they may pay to purchase clean products to replace their energy consumption
(electricity of fuels); price range of sale of clean products.

3) Recommendations
🞂 Based on the previous activities: Preparation of strategic recommendations with respect to all the regions and companies analyzed,
highlighting possible business opportunities and the recommended market approach for Mytilineos.
🞂The report should identify the 3 mains products (to be produced by Mytilineos) listed on the 3 given groups.
🞂 Ranking of the regions, from the most interesting to the less. Focus on the 3 most interesting regions to develop a project (higher
potential) and give 3 examples of projects to be developed.
🞂 Characterization of regions and industries, in a multi-criteria analysis with at least 8 KPIs (to be proposed by the consultant company).
A numerical scale between 0 and 10 should be defined to assign a score. For some criteria, the scale will be linked to numerical
values, while others will be defined qualitatively. Their respective weighting/weight will also be defined between the consultant
company and Mytilineos team. In your offer, please propose some of the criteria's you will/may select.
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4) Propose your planning to carry out the service

5) Detail your list of deliverables and Gantt

6) Present budget and conditions
DETAILED BUDGET
Description Price
Group 1 USD
Identification of potential off-tackers USD
Demand Estimation USD
Potential projects and recommendations USD
Group 2 USD
Identification of potential off-tackers USD
Demand Estimation USD
Potential projects and recommendations USD
Group 3 USD
Identification of potential off-tackers USD
Demand Estimation USD
Potential projects and recommendations USD
TOTAL PRICE USD

7) Payment conditions
8) Team and References
 Natalia Herrera
Project Development Director New Technologies LATAM/America
M: +56 9 8933 6725 / +56 9 9937 9978
E: natalia.herrera@mytilineos.gr