Ignis Energy has decided to pause its green hydrogen and ammonia project in Chile due to the slow progression in the hydrogen sector. The company is reviewing the project’s scope while confirming its commitment to the Magallanes region. Additionally, KKR plans to invest €400 million into Ignis’s renewable initiatives.
Spain’s Ignis Energy has recently opted to scale back its extensive investment in a gigawatt-scale green hydrogen and ammonia project in Chile. This decision stems from the sluggish global progression of the hydrogen sector, even as the company maintains a strong belief in the industry’s eventual maturity.
In the Magallanes region of Tierra del Fuego, Ignis had plans to develop an initial 2.25 gigawatt phase within a broader 4.5 gigawatt wind power network. This project was intended to incorporate 4 gigawatts of electrolysers aimed at generating hydrogen and ammonia from renewable energy sources.
Currently, Ignis is revising its project timeline and scope. The initiative in Chile is undergoing a thorough review, focusing on aspects such as the project’s size, appropriate land use, and potential locations. Despite these changes, Ignis has affirmed its commitment to the Magallanes region and has no intention of withdrawing from the area.
As of 2023, Ignis estimated the project would necessitate around 100,000 hectares of land, securing leasing agreements for roughly 50,000 hectares. However, by January 2024, the company had canceled over 13 landowner lease agreements in Tierra del Fuego, indicating a shift in their developmental strategy.
In a positive development for Ignis, KKR announced plans to invest up to €400 million to assist in advancing green hydrogen, ammonia, and various renewable technology initiatives. This partnership will see both parties collaboratively manage Ignis P2X, a newly established platform dedicated to the promotion of power-to-X projects both in Spain and internationally.
In summary, Ignis Energy is reevaluating its ambitious hydrogen and ammonia project in Chile in light of a decelerating global hydrogen market. The company is engaged in a comprehensive review of its plans while reaffirming its commitment to the Magallanes region. The partnership with KKR indicates continued investment in renewable technologies, albeit with a more measured approach.
Original Source: www.h2-view.com
