Chile US$11bn green ammonia megaproject enters environmental review phase

Austrian developer AustriaEnergy submitted for environmental review in Chile a green ammonia project worth US$11 billon, taking the number of green hydrogen sector projects in this phase to six.

Dubbed HNH Energy and planned for windswept Magallanes region, the project has multiple components geared to the production and transport of the zero-carbon fuel and industrial feedstock.

In terms of required outlay HNH Energy dwarves other projects under review.

Green ammonia is made by combining green hydrogen with nitrogen, which can be separated from the air.

Construction, penciled in to start in July 2026, is expected to take six years, according to documents filed with environmental review agency SEA. The project, with an operational life of 50 years, is earmarked for San Gregorio district, about 120km northeast of Punta Arenas.

Planned green ammonia production capacity is estimated at 6,600t/d.

With the entrance of HNH Energy into the system, the number of sector projects under review climbs to six, a tally comprising five plants and a wind park linked to one of them.

Given their relative ease of storage and transport compared with green hydrogen, green ammonia, as well as e-fuels, are the favored derivatives of export-focused producers.

“This project is a milestone for [Magallanes] region, given it is the first, out of those green ammonia production projects planned for the region, to enter the environmental review system,” Pamela Delgado, executive director of Chilean green ammonia research body MIGA, told BNamericas.

Given HNH Energy comprises – in a single project – not just a green ammonia production facility but also a desalination plant, pipelines and a port, the whole evaluation process will set a precedent, Delgado added. 

The energy ministry, meanwhile, said the investment was the biggest in the history of the environmental review service. 

A frequently heard comment at hydrogen events is that given Chile’s world-class renewable energy resources, locally produced green ammonia can become competitive even when logistics outlay is factored in.

Chief challenges facing developers today concern driving down unit costs and securing solid offtake contracts.

More than 65 projects have been announced in Chile, although details available for most are still limited. 

According to April data from sector chamber H2 Chile, 38% are in northern region Antofagasta and 28% in Magallanes. Nationally, almost half of the projects are geared exclusively to the domestic market and around a quarter to exports.

HNH Energy: Central project components

- Green hydrogen and green ammonia (Haber Bosch) plant

- Venting system

- Desalination plant and associated infrastructure

- Wastewater treatment plants

- Wind park of 1.4GW (194 turbines)

- Substation

- Energy storage (batteries)

- Nitrogen separator 

- Multipurpose port and 6-dock terminal (for importing project components and exporting ammonia)

- Underground power lines

- Underground ammonia pipeline

- Desalinated water pipeline

- Hydrogen storage

- Ammonia storage

- Temporary (construction phase) concrete and desalination plants

The project description can be downloaded from the box at the top of the page

Chile’s other permitting phase hydrogen projects

Project: Cabo Negro
Region: Magallanes
Output: E-fuels
Capex: US$830 million
Owner: HIF

Project: Green hydrogen for Calama mining district
Region: Antofagasta
Output: Green hydrogen
Capex: US$423mn
Owner: Susterra

Project: Quintero production plant
Region: Valparaíso
Output: Green hydrogen
Capex: US$30mn
Owner: GNL Quintero

Project: Volta
Region: Antofagasta
Output: Green ammonia
Capex: US$2.5bn
Owner: MAE

A wind park – the US$500mn Faro del Sur, linked to the planned Cabo Negro plant – is also under evaluation.