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Nachrichten, Termine, Experten
Nachrichten, Termine, Experten
After two years of research and development work, the German-Chilean Power-to-MEDME-R&D project has been successfully completed. The Fraunhofer Institute for Energy Economics and Energy System Technology IEE and its project partners have developed key technological, economic, and systemic foundations for the sustainable production of green hydrogen and its derivatives methanol and dimethyl ether (DME) in Chile. The results show that Chile offers excellent conditions for cost-efficient, climate-neutral production with a high potential for local use and export in an international comparison.
The project, funded by the German Federal Ministry of Research, Technology and Space (BMFTR), ran from October 2023 to 31 December 2025. The aim was to examine the entire value chain of power-to-X products – starting with the production of green hydrogen from renewable energies to the synthesis of methanol and DME – and to evaluate it holistically in technical, economic, ecological, and social terms. The project was managed by Fraunhofer IEE; other participants included Fraunhofer Chile Research, the Fraunhofer Institute for Solar Energy Systems ISE, the Fraunhofer Institute for Microengineering and Microsystems IMM, the Fraunhofer Institute for Silicate Research ISC and its HTL center, the Fraunhofer Institute for Applied Polymer Research IAP, the Fraunhofer Institute for Ceramic Technologies and Systems IKTS, RWTH Aachen University and the RILLL Research Institute on Lifelong Learning, as well as the German-Chilean Chamber of Industry and Commerce AHK Chile.
‘Power-to-MEDME R&D has shown that green methanol and DME from Chile can not only make an important contribution to climate protection, but are also competitive in the medium term,’ says Dr Ramona Schröer, project manager at Fraunhofer IEE. ‘Our analyses show that Chile offers particularly favorable conditions for the cost-efficient production of these energy sources due to its excellent potential for photovoltaics and wind energy. Based on current prices and price trends, green methanol will already be competitive with grey methanol in the medium term. On this basis, reliable prospects for markets, industry and exports can be derived.’
Chile as a key location for green hydrogen and derivatives
Chile has ideal natural conditions for hydrogen production from renewable energies due to its high potential for photovoltaics in the north, especially in the Antofagasta region, and wind energy in the south of the country. These enable extremely low production costs for green hydrogen and its derivatives in international comparison. It has also been shown that the type of CO2 supply and heat provision have a major impact on the costs and CO2 footprint of the product.
The project clearly showed that green DME has great potential in Chile as a substitute for diesel, liquefied petroleum gas (LPG) and natural gas, both as an additive and as a complete substitute, for example in heating applications, in the transport sector and, especially, in mining. In the future, the export of green DME also offers the prospect of gradually replacing fossil LPG. The existing LPG infrastructure can be used to a large extent for this purpose. Green methanol is also suitable for export and can be used in shipping, the chemical industry, and for the production of other derivatives such as sustainable aviation fuel (SAF), among other application areas.
Technological innovations and successful demonstration
A key success of Power-to-MEDME R&D is the successful commissioning and demonstration of a 7.5-meter-high pilot plant for DME reactive distillation, which was realized in the project. The process has already been technically validated; further scaling and commercialization of the technology is currently being investigated.
In addition, the project demonstrated that more cost-effective catalysts for PEM electrolyzers can be developed without compromising performance. A sensor concept for process monitoring of industrial CO₂ sources was also developed.
Accompanying detailed dynamic simulations of the entire process chain were carried out, which also considered the potential for integrating solid oxide electrolyzers (SOEC). The results show that simple linear models do not adequately reflect the complex interactions involved in the use of Concentrated Solar Power (CSP) and that a detailed thermo-hydraulic analysis is crucial for a realistic system design.
Practical evaluation and new market opportunities
A particular added value of the project arose from the intensive exchange with several mining companies, whose specific application profiles and vehicle requirements were directly incorporated into the analyses. This enabled the development of practical concepts for retrofitting existing heavy-duty and off-road vehicle fleets with green DME. The local production of green fuels thus presents an opportunity of gradually decarbonizing the entire value chain in mining.
In addition to technical and economic issues, Power-to-MEDME R&D assessed social, environmental, and regional impacts. Concepts for the training and further education of technical personnel and engineers were also developed, and training was conducted at the Universidad de Concepción to support the long-term development of know-how and value creation in Chile.
Strong partnership for the energy transition
The project results were presented at a closing event in Santiago de Chile together with key stakeholders, where prospects for investment, market launch and international cooperation were discussed. Power-to-MEDME-R&D has shown a feasible path for Chile to advance its national hydrogen strategy while leveraging existing infrastructure for rapid decarbonization.
The results of Power-to-MEDME R&D emphasize the importance of Chilean-German cooperation for the development of global value chains around green hydrogen. ‘We were able to create concrete prospects for industry and markets, thereby making an important contribution to the energy transition in Chile, strengthening the local economy and, building on this, securing Germany's long-term supply of climate-neutral energy sources,’ says Dr Ramona Schröer.
Dr. Ramona Schröer, Fraunhofer IEE
https://www.iee.fraunhofer.de/en/presse-infothek/press-media/2026/power-to-medme...
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