Situated in Southern Chile’s Magallanes region, the 1.7GW HNH Project will aim to generate green hydrogen using onshore wind that will be utilised for exports around the world.
With an investment size of $3bn, once the plant is operational green hydrogen and ammonia will both be exported in large quantities around the world thanks to the high potential of wind energy in the region.
The HNH Project will form part of CIP’s Energy Transition Fund, focused on power-to-x and other next generation renewable technologies in order to facilitate the decarbonisation of hard-to-abate sectors such as agriculture and transportation.
Søren Toftgaard, Partner at Copenhagen Infrastructure Partners, said, “CIP is pleased to be entering this joint venture with AustriaEnergy and Oekowind to develop the landmark HNH Project, the first project for CIP in Chile.
“We believe that Chile has the potential to be a key global player in the production and export of green hydrogen and green ammonia, with the Magallanes region representing an excellent onshore wind resource.
“Through the HNH Project and the partnership with AustriaEnergy and Oekowind, we look forward to producing green ammonia in Chile to support the global energy transition.”
Helmut Kantner, Managing Director of AustriaEnergy, said, “Austria Energy is proud to announce this important milestone for both the HNH Project as well as for the AustriaEnergy Group and Oekowind.
“The involvement of CIP will accelerate project development and bring its valuable expertise in financing industrial scale renewable projects.”
Hydrogen in Chile: An interview with Hinicio
In 2019, Chile exported $33bn worth of copper, maintaining its position as the world’s largest producer of the red metal. New milling technology, economic reforms and increasing investment attractiveness were catalysts that turned Chile into the copper powerhouse it is today.
But copper mining is a very energy intensive industry, and so less than a decade ago Chile began a drive towards renewable energies to power its sector. Since it embarked down the green technology route, Chile has pushed the cost of producing solar power down 80%.
So, where does hydrogen fit into all of this? Continuing with its push towards renewables, Chile wants to turn its solar boom into a hydrogen economy – and unlike solar and wind energy, hydrogen can be produced day or night in any weather conditions.
Want to continue reading? Click here.