Ignis Energy Scales Back Investments in Chile’s Hydrogen and Ammonia Sector
Ignis Energy has paused its gigawatt-scale hydrogen and ammonia project in Chile due to the sluggish global hydrogen market, although it believes in future growth. The company’s review includes assessing land use and project scope while maintaining its commitments to the Magallanes region. Additionally, a partnership with KKR aims to support further renewable technology development.
Ignis Energy, based in Spain, has decided to reduce its investment in a large-scale green hydrogen and ammonia project in Chile. This decision comes as a response to the slow global advancement of the hydrogen industry, despite the company’s confidence that the industry will ultimately progress.
In the Tierra del Fuege region within Magallanes, Ignis originally aimed to construct a 2.25GW phase as part of a 4.5GW wind power initiative. This project was intended to include 4GW of electrolyzers for the production of hydrogen and ammonia derived from renewable sources. Nonetheless, due to recent developments, the company is revising its project timelines and scopes carefully.
Ignis is currently conducting a thorough review of its Chilean initiative, focusing on aspects such as project size, land utilization, and potential locations. However, it has assured stakeholders that there are no plans to withdraw from the Magallanes region.
Initially, Ignis projected that the venture would require around 100,000 hectares of land and had secured lease agreements for approximately 50,000 hectares. As of January 2024, the company notably terminated over 13 lease contracts with landowners in Tierra del Fuego, indicating a strategic change in its development plan.
Looking ahead, in 2024, KKR announced intentions to invest up to €400 million to assist Ignis in developing projects related to green hydrogen, ammonia, and other renewable technologies. In this partnership, both entities agreed to collaboratively manage Ignis P2X, a newly founded platform aimed at promoting power-to-X initiatives in Spain and on a global scale.
In conclusion, Ignis Energy’s decision to scale back its green hydrogen and ammonia investments in Chile reflects the current challenges in the hydrogen industry. The company remains committed to the region while adjusting its project scope and lease agreements. Importantly, the planned collaboration with KKR marks a significant step forward in advancing renewable energy initiatives despite the project’s adjustments.
Original Source: www.h2-view.com
