Ignis Energy Scales Back Hydrogen and Ammonia Investments in Chile

Spain’s Ignis Energy is scaling back its green hydrogen and ammonia project in Chile due to slow industry growth, while reassessing its timeline and land use without plans to withdraw from the region. KKR plans to invest €400 million to support these renewable technology initiatives.

Ignis Energy, based in Spain, has decided to reduce its investments and pause a significant green hydrogen and ammonia initiative in Chile. This move is influenced by the slower global growth of the hydrogen sector, although the company maintains a strong belief in the industry’s eventual maturation.

The project in question was to encompass a major 2.25GW initial phase within a 4.5GW wind power network in Tierra del Fuego, Magallanes region. It was also set to include four gigawatts of electrolysers for producing hydrogen and ammonia utilizing renewable energy sources.

As Ignis reassesses its timeline and the scale of the initiative, a comprehensive review is underway. This process will evaluate the project’s overall size, land usage, and potential sites. Despite these considerations, Ignis has firmly rejected any intentions to withdraw from the Magallanes region.

Initially, the project was expected to need around 100,000 hectares of land, and by 2023, Ignis had secured leases for approximately 50,000 hectares. However, by January 2024, the company had cancelled over 13 contracts with landowners in Tierra del Fuego, indicating a newfound strategy in its development.

In 2024, KKR announced plans to invest up to €400 million to assist Ignis in its quest to develop projects related to green hydrogen, ammonia, and additional renewable technologies. This partnership will also see both companies collaborate under Ignis P2X, a new platform dedicated to enhancing power-to-X initiatives in Spain and worldwide.

Ignis Energy has made significant adjustments to its hydrogen and ammonia project in Chile, influenced by a slower hydrogen sector growth. The company is currently reviewing the project’s scale and land requirements while affirming its continued presence in the Magallanes region. The partnership with KKR promises further investments in renewable technology, underscoring ongoing commitments to the green hydrogen industry.

Original Source: www.h2-view.com