Spanish firm halts green hydrogen and ammonia project in Magallanes: it ruled out abandoning the area
The Spanish company Ignis has decided to reduce and stop the renewable energy generation projects it had planned in the Magallanes region, due to “ the global trend of slowing down projects associated with the hydrogen industry,” it confirmed to the EFE agency on Tuesday.
Ignis said in a statement,
Even though we firmly believe that this industry will develop and mature, the company is considering a longer time frame than initially planned and a reduction in the project to adapt it to this new reality,
He explains,
At the moment, the project is undergoing a general evaluation study in terms of sizing, territorial order and final locations,
Spanish company Ignis puts its renewable projects in Chile on hold
Despite this announcement, the energy company has reiterated its commitment to the region and rules out any possibility of abandoning the area, reaffirming its willingness to continue with the development of renewable energy initiatives.
Ignis arrived in Magallanes in early 2023, whose natural conditions give it great potential for the generation of renewable energy, with the intention of installing a green ammonia production project .
That same year, the company set itself the goal of developing a wind farm to supply the future ammonia production plant, which would require a land area of approximately 100,000 hectares. To do so, it decided to concentrate on the Tierra del Fuego area, in the extreme south of the country, where it signed lease agreements for around 50,000 hectares.
However, on January 29, the company terminated more than 13 contracts with Tierra del Fuego owners because the slowness of the process had affected the profitability of the project, local media reported.
According to former regional ministerial secretary of Finance Christian Gallardo,
Investments in green hydrogen are hampered by excessive bureaucracy, delays in permits, high logistics costs and a lack of sufficient infrastructure
“weaken” Chile in the face of the rapid progress of countries such as Argentina, Brazil, Uruguay and Colombia, he believes.
Gallardo added:
Permits must be streamlined, infrastructure investments must be increased, and regulatory certainty must incentivize long-term investments.
“These are our unique opportunities to be leaders in green hydrogen, but without these measures, we will lose them,”
Ignis Energy is a Spanish global energy company, integrated in the renewable energy sector and in the offer of innovative energy solutions. It owns the largest solar project in Europe, with 850 MW, and has a presence in Italy, Germany, England, the United States, Peru and the Philippines.
In Spain, the company holds more than 6% of the energy market. It has more than 550 professionals worldwide and is developing more than 150 projects in its country, both its own and for third parties. In less than four years, it has become one of the largest developers of renewable energy in Spain
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Spanish firm halts green hydrogen and ammonia project in Magallanes: it ruled out abandoning the area, source
