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

Publication Date: 16.12.2025, 13:00

Multibillion-dollar hydrogen projects in Patagonia face regulatory scrutiny, community opposition, and questions over economic viability.

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.

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