Spain’s Ignis Energy has decided to pause its green hydrogen and ammonia project in Chile due to slower market conditions. The company is adjusting its plans but remains committed to the Magallanes region. Ignis is reviewing project specifics and has recently partnered with KKR for further support in renewable technology investments.
Spain’s Ignis Energy has announced the scaling back and pausing of its gigawatt-scale green hydrogen and ammonia project in Chile. This decision was prompted by the slower global progression of the hydrogen sector, despite the company expressing a strong belief in the future maturation of the industry.
In the Magallanes region of Tierra del Fuego, Ignis had initially intended to establish the first phase of a 4.5GW wind power network. The project was also designed to include 4GW of electrolysers for the production of hydrogen and ammonia derived from renewable sources.
Currently, Ignis is adjusting its project timelines and scope, undergoing an extensive review of its Chilean initiative to evaluate its size, land use, and potential sites. Notably, the firm maintains that it has no intention of withdrawing from the Magallanes region.
In 2023, Ignis indicated that the project would require roughly 100,000 hectares of land and successfully secured lease agreements covering about 50,000 hectares. However, by January 2024, the company had ended over 13 lease contracts with landowners in Tierra del Fuego, marking a notable shift in its development strategy.
In parallel developments, KKR revealed plans to invest up to €400 million to support Ignis in its endeavors to develop green hydrogen, ammonia, and additional renewable technology initiatives. This partnership will also include the joint operation of Ignis P2X, a new platform aimed at promoting power-to-X projects both in Spain and internationally.
In summary, Ignis Energy has opted to pause its green hydrogen and ammonia project in Chile due to a slower global hydrogen market, while conducting a comprehensive review of the initiative. Despite the reduction in scale and timeline, the company does not plan to withdraw from the Magallanes region. Furthermore, its partnership with KKR aims to bolster investments in renewable technologies, demonstrating a commitment to advancing these projects in the long term.
Original Source: www.h2-view.com
