Ignis Energy has paused its green hydrogen and ammonia project in Chile due to a slowing market, while still believing in the industry’s future. They are reviewing the project’s scope and land usage but remain committed to the Magallanes region. KKR will invest up to €400 million to support Ignis’s renewable technology initiatives.
Ignis Energy, based in Spain, has decided to pause its ambitious green hydrogen and ammonia project in Chile amidst a decelerating global hydrogen market. Despite this adjustment, the company maintains a strong belief in the eventual maturation of the industry. Initially, the plan included the construction of a 2.25GW wind power network, as part of a larger 4.5GW initiative in the Magallanes region, complemented by 4GW of electrolysers to harness renewable energy for hydrogen production.
The adjustments to Ignis’s project timeline and scope are comprehensive, with a thorough review of the initiative in Chile focusing on its scale, land utilization, and potential locations. Ignis denies any intention to exit the Magallanes region despite the recalibrations. The project had previously indicated a requirement for about 100,000 hectares of land, of which 50,000 hectares were secured through lease agreements.
However, by early 2024, multiple lease contracts had been terminated, reflecting a strategic shift in Ignis’s development approach in Tierra del Fuego. Additionally, KKR has announced its plan to invest up to €400 million in Ignis, aimed at fostering the development of green hydrogen, ammonia, and other renewable technologies. This partnership involves jointly operating Ignis P2X, an initiative focused on advancing power-to-X projects both in Spain and on a global scale.
In summary, Ignis Energy’s decision to scale back its hydrogen and ammonia project in Chile indicates a response to the current challenges within the hydrogen industry. The company is reevaluating its initiatives in the Magallanes region, albeit with a commitment to continue development. Meanwhile, significant investment from KKR highlights ongoing interest in renewable technologies despite these adjustments.
Original Source: www.h2-view.com
