A US$16.0bn project planned for Chilean region Magallanes has become the seventh green hydrogen sector initiative to enter the environmental review phase in the country.
Planned by France’s TotalEnergies H2 and branded H2 Magallanes, the export-oriented project will be geared to producing derivative green ammonia, which has multiple uses, including as a fertilizer feedstock and a fuel.
Due to enter the construction phase in early 2027 and come online by end-2030, according to information filed with review agency SEA, the project takes Chile’s permitting phase pipeline to US$41bn in terms of planned associated investment. An environmental impact study filed by TotalEnergies H2 corresponds to the first of two planned phases – the second constituting an expansion. Overall, construction is due to take six years.
A central challenge of green hydrogen developers in Chile and elsewhere is driving down production costs and securing offtakers, along with other hurdles that need clearing in spheres such as permitting, infrastructure and regulations.
H2 Magallanes, phase 1 chief components
Generation, storage
A 5GW wind park, comprising 616 generators of 8MW each. Gas-fired backup power plant, convertible to run on hydrogen, comprising five turbines of 44MW each and gas storage for up to six hours of supply in the event of a power outage. Furthermore, two steam turbines of 110MW each, using steam generated by the ammonia plant and the gas turbines, are planned. Gas would be supplied via the network of state oil firm Enap, which extracts oil and gas locally. A battery storage system is also planned.
Transmission
Powerlines of 33kV and 220kV and associated substations.
Hydrogen production
Seven electrolysis centers for a combined 3.85GW. Each with production capacity of 250t/d, for total daily output of 1,750t. Gaseous hydrogen will be compressed and transported, via pipeline, to an ammonia plant.
Desalination, treatment plants
Desalination plant with capacity of 1,300l/s, other water treatment facilities, and associated pipelines.
Ammonia plant, storage
Haber-Bosch technology ammonia plant with capacity of 10,800t/d. Four storage tanks of 60,000m3 each and associated pipelines to transport ammonia to an export terminal.
Terminal
Port terminal for the importing of goods and the exporting of ammonia. Four more storage tanks of 60,000m3 each. Subsea or elevated pipelines being considered.
Auxiliary facilities
These include worker accommodation, aggregate and concrete plants, and a facility for the manufacture of concrete towers for wind turbines.
Second phase
The planned second phase envisages up to 5GW of additional capacity, and the expansion of ammonia and hydrogen production, and desalination infrastructure, among other work. A separate permitting process would be required.
“It should be noted that the circumstances on which the viability and implementation of stage 2 depend are subject to the evolution and availability of technological developments, as well as the progress and consolidation of the green hydrogen industry and its associated value chain at both regional and global levels,” an executive summary of the project’s environmental impact study reads.
Chile’s other permitting phase green hydrogen projects
Project: HNH Energy
Region: Magallanes
Output: Green ammonia
Capex: US$11.0bn
Owner: Austria Energy
Grid connection: No
Project: INNA
Region: Antofagasta
Output: Hydrogen and ammonia
Capex: US$10.0bn
Owner: AES Andes
Grid connection: Yes
Project: Volta
Region: Antofagasta
Output: Green hydrogen and ammonia
Capex: US$2.5bn
Owner: MAE
Grid connection: Yes
Project: Cabo Negro
Region: Magallanes
Output: E-fuels
Capex: US$830mn
Owner: HIF
Grid connection: No
Project: Green hydrogen for Calama mining district
Region: Antofagasta
Output: Green hydrogen
Capex: US$423mn
Owner: Susterra
Grid connection: Yes
A wind park – the US$500mn Faro del Sur, linked to the planned Cabo Negro plant – is also under evaluation.
Others being mulled
Chile has around 70 publicly announced green hydrogen projects. The market, according to comments made at a recent energy conference, is going through a “cleaning” process, leaving only the most solid ones standing.
ALSO READ: Survival of the fittest – Chile hydrogen project pipeline in cleaning phase
