Energy Transition

Boost for $8bn wind-powered Chile green hydrogen plan as Hive joins 'ammonia hub'

Latest investment round also includes Middle East construction giant CCC as team says massive project could be 'ready to build' by end of next year

Project executives at the site in Chile, said to offer some of the world's best wind resources.
Project executives at the site in Chile, said to offer some of the world's best wind resources.Foto: TEG

The team planning one of Latin America’s largest wind farms to power major green ammonia production said the $8bn project could be “ready to build” by late next year after a new investment round secured key backers.

Transitional Energy Group (TEG) and new joint venture partner Hive Energy, the UK-based renewables developer, want to site 3.3GW of wind power in Tierra del Fuego, Chile, linked to hydrogen electrolysis and ammonia production for export from the project, called Gente Grande.

The giant renewables facility would tap what are billed as some of the world’s best wind resources in wide open spaces along the Magellan Straits on the southern tip of Chile, an area that also boasts established deepwater ports and which has attracted a number of major global players looking to set up huge green H2 production, including TotalEnergies-backed Total Eren with its 10GW H2 Magallanes plan.

The TEG-Hive partnership said Gente Grande's latest $20m investment round will cover all pre-construction costs such as environmental assessments that are already underway, ensuring “ready to build” status can be achieved by late 2024. Operations are slated from 2026, according to TEG's website.

The investors also include CCC, the Qatar-based construction giant that has also backed several other major hydrogen ventures.

The partners did not say how large they expect for the capacity of the electrolyser component of the project, which is billed as a “low-cost, high-volume ammonia supply hub for customers across Asia, Europe and the Americas”.

Hive now has a 15GW renewables pipeline relating to green hydrogen. “Hive’s global network, proven renewables track record and shared values make an excellent fit for the project,” said TEG chairman Roland Fisher.

TEG said it is talking to global potential offtakers for green ammonia produced by Gente Grande, which is targeting output of about 1.3 million tonnes per annum of green NH3.

Ammonia produced using green hydrogen in the process is widely tipped to play a major role in the future H2 economy, with plans for large-scale export facilities springing up around the world, many in areas such as Africa and Australia.

Ammonia is used to produce fertiliser and other chemicals, and is increasingly being touted as a future zero-carbon shipping fuel. It can also be cracked back into hydrogen and nitrogen in another energy-intensive process.

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Published 27 February 2023, 10:57Updated 27 February 2023, 10:57
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