Spain’s Ignis Energy scales back its green hydrogen and ammonia project in Chile due to slow market growth. Despite this, the company continues its efforts in the Magallanes region, reassessing project scope and land use while partnering with KKR for further investment in renewable technology.
Ignis Energy of Spain has recently decided to reduce its investments in a large-scale green hydrogen and ammonia project in Chile. This decision stems from the slow global momentum of the hydrogen sector, though the company retains confidence in the industry’s future growth potential.
In the Magallanes region of Tierra del Fuego, Ignis initially intended to construct the first 2.25GW phase of a broader 4.5GW wind power project. This plan included the installation of 4GW of electrolysers designed to convert renewable energy into hydrogen and ammonia.
Currently, Ignis is revising its project timeline and scope, conducting a thorough review of land use and potential sites while maintaining its commitment to the Magallanes region. The adjustments involve reassessing the project’s size and land footprint.
Originally, in 2023, Ignis announced that the project would need around 100,000 hectares of land, later leasing approximately 50,000 hectares. However, the company retracted over 13 land lease contracts in early 2024, indicating a strategic pivot in its development plan.
Moreover, in 2024, investment firm KKR revealed intentions to contribute up to €400 million to support Ignis in its green hydrogen and ammonia initiatives. The two entities have formed a partnership to co-manage Ignis P2X, a platform aimed at advancing power-to-X initiatives both in Spain and worldwide.
Ignis Energy is recalibrating its investment strategy in Chile, responding to sluggish progress in the hydrogen industry while still affirming its belief in future growth. The company is refining its ambitious green hydrogen and ammonia project in the Magallanes region and has forged a partnership with KKR for enhanced support. These changes reflect a strategic shift in how Ignis approaches renewable energy development.
Original Source: www.h2-view.com
