Copenhagen Infrastructure Partners (CIP) has joined forces with AustriaEnergy and Oekowind to develop the planned HNH green hydrogen project, which includes a 1.7GW onshore wind farm and 1.4GW of electrolysis capacity, in south Chile.
Located in the Magallanes region, which has huge wind resources, the HNH project is a large-scale, export-oriented green hydrogen and green ammonia project expected to cost over $3 billion. It will be powered by what will be South America's largest wind farm to date, although other projects, such as Total Eren's H2 Magallanes facility using 10GW of onshore wind planned for the same part of Chile, are significantly larger.
The partners aim to file an environmental application for the project by the end of 2022, and expect to reach a final investment decision on the project in 2024 or 2026..
AustriaEnergy aims to begin green hydrogen production as soon as 2026. As well as the 1.7GW onshore wind farm, the project will consist of electrolysers, an ammonia plant and port facility. It is expected to produce one million tonnes of green ammonia annually. International chemicals trader Trammo signed an exclusive agreement last year to buy the ammonia from the project.
Helmut Kantner, managing director of AustriaEnergy Group, said the company is "proud to announce this important milestone", adding that the "involvement of CIP will accelerate project development and bring its valuable expertise in financing industrial scale renewable projects”.
CIP partner Søren Toftgaard 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 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."
The HNH Project will form part of CIP’s Energy Transition Fund, which is 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.