Japan’s Sumitomo Corp. Group, Osaka, and the energy generation and solutions company Colbún, Santiago, on Jan. 30 announced the signing of a Memorandum of Understanding to form an alliance to study the feasibility of developing green hydrogen projects to produce green ammonia in the regions of Antofagasta and Magallanes.
In Antofagasta, for the production of green hydrogen, the parties will evaluate the feasibility of providing part of the renewable energy supply from Colbún’s Inti Pacha photovoltaic solar project (486 MW, María Elena commune), which has already received environmental approval. Inti Pacha, together with other photovoltaic initiatives by Colbún, would supply the energy for the project.
As for the export of green ammonia, the parties will look at the feasibility of using the logistics and port facilities of Interacid, Sumitomo’s port subsidiary located in Mejillones that currently is mainly dedicated to the import of sulfuric acid and fuels for mining.
In Magallanes, the agreement points to a 1 million mt/y green ammonia project and includes feasibility studies for port facilities, renewable energy generation, and the development of infrastructure to produce hydrogen and other products.
“We are honored to be able to jointly develop these large-scale green ammonia projects with Sumitomo,” said José Ignacio Escobar, Colbún CEO. “It is a tremendously important step, which will allow us to consolidate our growth strategy based on new technologies – among which green hydrogen is located, and its different forms of conversion – and in turn advance in transforming our country into a power of green hydrogen and its derivatives both for Chile and for the world.”
“Colbún is a company with a lot of experience in the development of green energy in Chile and has an important know-how in how to develop projects, even in extreme areas,” said Taizo Hayakawa, President, Sumitomo Corp. Chile. “Together with Colbún we can develop very competitive and feasible projects to supply green ammonia to Chile, Japan, and the whole world.”
“Our green hydrogen strategy has two focuses,” added Juan Pablo Fiedler, who heads up Colbún’s Green Hydrogen Management segment. “One, linked to the domestic market, where we see that it can be a relevant option for the decarbonization of our customers, or potential customers, in Chile or Peru. And the second focus aims to contribute to Chile positioning itself as a relevant player in this industry worldwide.”
Colbún hasnearly 1,000 workers and an installed capacity of close to 4,000 MW through 27 generation plants, with operations in Chile and Peru.