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Chile: Minister Jobet Welcomes Mega Agreement to Produce Hydrogen and Green Ammonia in Magallanes

By June 19, 2021 4   min read  (707 words)

June 19, 2021 |

Fuel cells works, Chile: Minister Jobet Welcomes Mega Agreement to Produce Hydrogen and Green Ammonia in Magallanes

“Through green hydrogen we will begin to clean up our agriculture and maritime transport”

  • The companies involved – AustriaEnergy and Oekowind – announced that they plan to start operating and producing green ammonia in the country within the next five years.
  • Trammo, one of the world’s largest fertilizer trading companies – with more than 55 years of experience – will acquire and market green ammonia and transport it to customers around the world using its fleet of specialized refrigerated vessels.
  • This new mega project in Magallanes joins the Haru Oni ​​of Highly Innovative Fuels (HIF), which already has permission to begin construction, and which is expected to be producing the first molecules within the next year.

The Minister of Energy, Juan Carlos Jobet , appreciated the signing of the Memorandum of Understanding between Trammo and HNH Energy, a project developed by the AustriaEnergy Group and Oekowind for the production of 1 million tons of green ammonia – derived from green hydrogen – in a park 2 GW wind farm in Magallanes.

“This is the second project in Chile that will manufacture green ammonia on a large scale. Through this gas we will begin to clean up two very important sectors for our country: agriculture and maritime transport, “explained the minister of energy and mining, Juan Carlos Jobet.

He added that “by using green ammonia for fertilizers, agricultural products with a lower carbon footprint will be produced and transported for Chilean consumption and export.”

AustriaEnergy has partnered for this project in Chile, with the also Austrian Oekowind, a company that develops and operates wind, hydroelectric and solar power plants. The companies involved announced that they plan to start operating and producing green ammonia in the country within the next five years.

Trammo, one of the world’s largest fertilizer trading companies – with more than 55 years of experience – will acquire and market green ammonia and transport it to customers around the world using its fleet of specialized refrigerated vessels.

AustriaEnergy, an independent international renewable energy developer since 2013 with a subsidiary in Santiago de Chile, has since materialized about 1 GW in large-scale projects of public services, both wind and solar-photovoltaic.

In this context, Minister Jobet also highlighted that “of the more than 40 projects currently under development in Chile, there are at least six that will seek to produce green hydrogen to manufacture ammonia for different industries.”

The main input for ammonia is hydrogen, which was historically extracted from natural gas. Today it could be extracted from water using renewable energy, so this new green ammonia would be carbon-free.

Ammonia is used mainly for the production of fertilizers, explosives, fuels and more complex chemical compounds, which is why it is involved in the value chains of products used daily in different parts of the world.

The global shipping industry and certain electricity generating companies increasingly see green ammonia as an alternative to clean up their industries: ships and ammonia turbines are in direct development these days. It is something of the medium-long term, but it will open a huge demand market for green hydrogen.

GREEN HYDROGEN IN MAGALLANES

Minister Jobet explained that “the Magallanes Region has the best strategic conditions to be a pole in the generation and export of green hydrogen. This is due to its excellent potential in wind energy, its infrastructure, petrochemical and port experience necessary to generate and export the fuel of the future ”.

According to a study by the Ministry of Energy, the southernmost region of the country could produce 13% green hydrogen in the world given its immense potential in wind energy, considering that the estimated annual wind power generation in Magallanes could exceed the generation by 7 times. current electricity company of the Chilean electricity matrix.

For its part, the International Energy Agency estimates Chile’s green H2 generation potential at more than 160 million tons per year, which means that Chile could produce more than twice as much green hydrogen as is currently produced Worldwide.

This new mega green hydrogen project (HNH Energy) joins the Haru Oni ​​of Highly Innovative Fuels (HIF), which already has permission to begin construction, and which is expected to be producing the first molecules within the next year. This project seeks to build a green hydrogen-based eFuel production plant in the south of the country.

Source: Chile Ministry of Energy

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