Ignis Energy has paused its green hydrogen and ammonia project in Chile due to the slow pace of the hydrogen market. Originally planning a large-scale project in Magallanes, the company is adjusting its scope while confirming it will not withdraw from the region. KKR plans to invest €400 million to support Ignis’s renewable projects.
Spain’s Ignis Energy has announced a decision to scale back and pause its proposed gigawatt-scale green hydrogen and ammonia project in Chile. This move is attributed to the slower global progression of the hydrogen industry, despite the company’s firm belief in its eventual maturation. Ignis initially aimed to create a 2.25GW phase of a broader 4.5GW wind power network in Tierra del Fuego’s Magallanes region, incorporating 4GW of electrolysers for hydrogen and ammonia production.
In response to current market conditions, Ignis is revising its project timeline and scope. The company’s initiative in Chile is currently undergoing a thorough review to evaluate its scale, land usage, and viable sites. Nevertheless, Ignis has confirmed that it does not intend to withdraw from the Magallanes region.
As of 2023, Ignis had estimated that the project would require around 100,000 hectares of land, securing lease agreements for approximately 50,000 hectares. However, by January 2024, the company had cancelled over 13 lease contracts with landowners in Tierra del Fuego, indicating a strategic shift.
Moreover, in 2024, KKR announced an investment of up to €400 million to assist Ignis in advancing green hydrogen, ammonia, and other renewable technology initiatives. Under this partnership, both entities plan to co-manage Ignis P2X, a newly formed platform dedicated to advancing power-to-X projects both in Spain and globally.
In conclusion, Ignis Energy’s decision to scale back its green hydrogen and ammonia project in Chile reflects the current challenges facing the global hydrogen industry. While the company continues to believe in the sector’s future, it is making necessary adjustments to its development strategy. The partnership with KKR demonstrates a commitment to advancing renewable technology despite these setbacks.
Original Source: www.h2-view.com
