Green Ammonia: US$40 billion in projects await green light for 2026 in Chile
Corfo awarded three business consortia from Chile, Spain, and China the installation of the first electrolyzer factories in Chile, which would be set up in the Metropolitan Region and the Biobío region with a public contribution investment of $25.6 million dollars.
In mid-May of this year, the green ammonia project of the company Total EREN submitted its initiative to the environmental evaluation system with 5 GW of wind power and 3.85 GW of electrolyzer capacity, with an investment of more than $16 billion dollars. "This is one of the four commercial-scale ammonia projects in the Chilean portfolio", pointed out the executive director of the Corfo Committee of Green Hydrogen, Ana María Ruz, when intervening in the forum of the International Alliance for Hydrogen and Fuel Cells in the Economy (IPHE) that debated on the state of the art of the projects of this energy in the country and the rest of the world.
Ruz indicated that "we have four large-scale green ammonia projects, with almost $40 billion in investment and a projection of 5.9 million tons of green ammonia. With all of this already deployed, we expect final investment decisions (FID) to begin in 2026 and commercial operation (COD) by 2031."
Additionally, there's the project from HIF Global called Faro del Sur in Magallanes that exports ecofuels and emethanol to the European Union, where the buyers are also investors in this operation.
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The director of the Hydrogen Committee participated in the panel "Public policies that drive the development of the green hydrogen industry" alongside Ángel Caviedes from the Chilean Ministry of Energy; Noriya Udagawa from IPHE Japan and Patrice Millet from IPHE European Commission.
IPHE is an intergovernmental cooperation forum made up of 26 countries and the European Commission, whose purpose is to guide its member countries and industry leaders in hydrogen and fuel cell development to drive the development and implementation of these technologies in the energy transition process. The IPHE appointment was held as part of the 43rd Meeting of the IPHE Steering Committee, which this year was held in Chile for the first time.
As Ana Maria Ruz explained, considering the projections of the International Energy Agency (IEA), "we believe we have a great opportunity to manufacture clean energy technologies in Chile, thereby avoiding further pressure on the busiest maritime routes".
In this regard, she highlighted the calls for proposals launched by Corfo since last year for the manufacturing and/or assembly of electrolyzers in Chile and that already has three business consortiums from Chile, Spain and China that will set up the first plants in the Metropolitan Region and the BioBio region thanks to a public investment of 25.6 million dollars.
"The Chilean GDP has been close to 2% in the last 10 years, so we need to take advantage of the benefits we have in the production of clean hydrogen as an industrial opportunity to increase our GDP and contribute to global decarbonization. In the last decade, mining has contributed almost 9% to our output and we hope that hydrogen and its derivatives reach a similar positive economic impact as mining, with the highest environmental and social standards," noted Ana María Ruz.