(Bloomberg) -- German gas supplier Linde AG is participating in a project to produce e-fuels in Chile, Germany’s Economy Ministry said.

The objective is to provide clean power for heavy-duty vehicles from the country’s mining areas, a spokesperson for the ministry in Berlin said. Chile has set itself the goal of becoming one of the top three exporters of green hydrogen by 2040, and has already begun start-up projects for synthetic fuels. 

The project was announced following a meeting between Chilean Energy Minister Diego Pardow and Germany’s Robert Habeck in Berlin, where they signed an agreement to expand a bilateral climate and energy partnership. Germany has lobbied to exclude cars running on e-fuels from a European ban on combustion engines from 2035, and will need to import such synthetic fuels. 

The Chile proposal includes an electrolyser with a capacity of 12 megawatts, a carbon dioxide capture plant and a synthesis plant for methanol/dimethyl, the ministry spokesperson said. Costs are estimated at €41.7 million ($45.17 million), of which the German government will fund about 40%.

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