Chile’s green ammonia ambitions collide with permitting delays, costs and local resistance

Chile’s ambition to become a global hub for green hydrogen and ammonia is facing resistance in Patagonia, where several high-profile projects are being paused, delayed, or cancelled amid regulatory reviews, local opposition, and cost pressures.

Projects promoted as pillars of a $40 billion-plus green hydrogen investment pipeline are instead highlighting the challenges of translating national climate goals into large-scale infrastructure in remote and environmentally sensitive regions.

What happened?

• Two major projects in Chile’s Magallanes region, with a combined planned investment of about $27 billion, have been put on hold following environmental scrutiny and community resistance.
• HNH Energy’s $11 billion project near San Gregorio includes nearly 200 wind turbines, desalination facilities, an ammonia plant, and a private port, targeting about 1 million tons of green ammonia per year.
• Chile’s environmental authority has issued hundreds of technical observations, requiring additional studies and suspending the review process until at least March 31, 2026.
• The neighboring $16 billion H2 Magallanes project, led by TotalEnergies, has also requested a prolonged pause in permitting.
• French utility EDF has cancelled its 785-megawatt Energia Verde Austral green hydrogen and ammonia project in southern Chile.

Why is this important?

• The stalled developments highlight growing tension between national decarbonization goals and local environmental and social concerns.
• Scientists and residents warn that large wind farms, ports, and increased shipping traffic could disrupt wildlife along one of South America’s least industrialized coastlines.
• Green hydrogen and ammonia remain more expensive than conventional fuels, leaving projects dependent on long-term buyers willing to pay a premium.
• Delays and cancellations risk weakening Chile’s position as a leading destination for clean energy investment, despite its strong wind resources.