Press Release

Paraguay: Ande, Neogreen sign contract for green hydrogen

Bnamericas Published: Wednesday, February 01, 2023

This Ande statement was translated from Spanish by an automated system.

According to the planning of the aforementioned company, the project will be divided into two phases, and will begin through two feasibility studies. Once the first feasibility study (Phase I) has been completed, progress will be made with the smaller-scale project, aimed mainly at the domestic supply of green hydrogen, and intended for industrial users in Paraguay, for which the consumption of electrical energy will be required from a minimum of 10 MW up to a maximum of 75 MW. Subsequently, progress will be made on a second feasibility study (Phase II), with which an additional 225 MW will be necessary. In total, 300 MW will be required.

The Contract establishes the rights and obligations assumed by the contracting parties regarding the Provision of the Connection Service and Electric Power Supply to NEOGREEN Hydrogen Corporation in Very High Voltage (220,000 volts), in accordance with Law No. 966/64 and the current Price List.

All technical terms and expressions between ANDE and NEOGREEN Hydrogen Corporation have the meaning established in Chapter 3 - Definitions of Tariff Schedule No. 21, approved by Decree No. 6,904 of the Executive Power of the Nation, dated March 10, 2017 in force and the one that replaces it in the future, during the term of the contract.

The supply Tariff to NEOGREEN Hydrogen Corporation corresponds to Category 620 Very High Voltage of the current Tariff Sheet No. 21 or the one that replaces it in future tariff sheets, and in accordance with current commercial criteria.

NEOGREEN Hydrogen Corporation must adapt to any modification, be it in the structure and/or readjustment of the tariffs, as well as any modification made in the Tariff Sheet and current regulations.

The construction of the different plants will generate, at its peak, between 2,500 and 3,000 sources of work, this includes specialized welders, assemblers, instrumentalists, electricians, painters, insulators, civil works, masons, among others necessary for the operation of plant.

In addition, around 7,500 indirect jobs related to the project will be generated, including transportation, food, manufacturing of metal structures, tanks and containers, concrete and civil construction materials, roofing, painting, architectural finishes, security personnel, commercial sector, logistics, among others.

In the same way, once the plant is in operation there will be opportunities for specialized maintenance of the plant, which will employ around 1,000 people every 18 months, and will generate a service sector to meet the new requirements, either for provide spare parts, representation and maintenance of rotating equipment, automation equipment and power equipment, etc.

Regarding the permanent operating and administrative personnel, the plant will require approximately 250 people including operators, managers and maintenance personnel, all of these personnel are highly qualified and trained, which will contribute to raising the quality of life in the area.

With the amount of production that the plant will generate, it will be possible to supply around 30% of the nitrogen requirements of the Paraguayan agricultural sector, which will be a determining factor for Paraguayan agricultural security and will contribute to productive sovereignty.

Finally, the production of Hydrogen of this magnitude will place Paraguay at the forefront of energy transformation, with state-of-the-art technology in the production of hydrogen and turning it into fertilizer that will guarantee the inclusion of Paraguay within the circular economy criteria, thus attracting other business opportunities and possible development of the downstream chain.

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