Permitting D-Day nears for US$2.5bn Antofagasta green ammonia project

Officials in Chilean region Antofagasta are due to vote this Friday on one of the country's biggest green hydrogen projects – US$2.5bn Volta. 

Environmental review agency SEA has recommended approving the initiative, designed to produce up to 620,000t/y green ammonia. Other components are a 600MW solar PV park along with grid and water infrastructure, amonng them a 2,430MWh energy storage system.

The regional evaluation commission, or Coeva, will vote on the project. Coevas, chaired by regional presidential delegates, decide whether to approve or reject or conditionally approve projects.

In a document recommending approval, SEA states the project " complies with the applicable current environmental regulations."

Developer MAE is behind the project and has told BNamericas previously that the company was in talks with potential local and international clients.

Green ammonia is seen playing a future role as a clean industrial feedstock and heavy transport fuel.

If approved, Volta would become the third large-scale green hydrogen project given the green light in Chile. 

In October, HIF obtained environmental approval for its pioneering US$825mn Cabo Negro production project in Magallanes region. The initiative is one of two interlinked projects. The other — the US$500mn Faro del Sur wind park — remains under environmental review.

This year authorities greenlit the US$423mn Calama district hydrogen production project, in  Antofagasta, the first large-scale hydrogen initiative to secure a license. 

The country boasts world-class wind and solar resources, key to improving project economics. Beyond permitting and infrastructure, major challenges for developers include reducing unit costs to compete with fossil fuels and securing offtakers.

(The original version of this content was written in English)