Ignis Energy has decided to pause its large-scale green hydrogen and ammonia project in Chile due to the slower progress in the hydrogen sector. The company is currently reviewing its plans and land use while maintaining its commitment to the Magallanes region. KKR has announced a €400 million investment to support Ignis’s renewable technology projects, indicating continued collaboration in the energy sector.
Ignis Energy, a Spain-based company, has announced it will scale back and pause its gigawatt-scale green hydrogen and ammonia project in Chile. This decision is attributed to the slower-than-expected global development of the hydrogen sector, despite the company’s belief in the industry’s eventual maturation.
In the Magallanes region of Tierra del Fuego, Ignis initially aimed to construct the first 2.25GW phase of a broader 4.5GW wind power network, coupled with 4GW of electrolysers for hydrogen and ammonia production from renewable energy sources. However, the company is now recalibrating its timeline and project scope while conducting an extensive review to evaluate the scale, land use, and suitable locations.
Despite these modifications, Ignis reaffirmed its commitment to the Magallanes area and clarified that it does not intend to completely withdraw from the project. The undertaking is projected to require around 100,000 hectares of land, of which Ignis had previously leased approximately 50,000 hectares.
As of January 2024, Ignis terminated over 13 land lease contracts in Tierra del Fuego, indicating a strategic shift in development methodology. Meanwhile, investment firm KKR has pledged to provide up to €400 million to assist Ignis in advancing green hydrogen, ammonia, and various renewable energy initiatives. Furthermore, KKR and Ignis will collaborate on Ignis P2X, a new platform focused on enhancing power-to-X projects both in Spain and internationally.
In summary, Ignis Energy is reassessing its green hydrogen and ammonia initiative in Chile in light of slower global hydrogen development. The company’s adjustments involve a significant reduction in project scope and lease agreements while maintaining a presence in the Magallanes region. Additionally, KKR’s upcoming investment signals ongoing support for Ignis’s renewable energy ambitions, particularly in hydrogen and ammonia production.
Original Source: www.h2-view.com
