Chile approves $11 billion HNH Energy green ammonia project in record environmental ruling

Chile’s Magallanes Environmental Assessment Commission has unanimously approved the environmental impact study for HNH Energy’s $11 billion green ammonia project in the country’s southernmost region. The 12-0 vote clears the largest environmental approval in Chile’s history and opens the path for the consortium to begin construction as early as 2027, with first ammonia production targeted for late 2030.

HNH Energy is a consortium formed by Austrian firms AustriaEnergy and Ökowind and Danish investment fund Copenhagen Infrastructure Partners. The project, located in the commune of San Gregorio near Gregorio Bay, will integrate a wind farm, green hydrogen electrolysis, an ammonia synthesis plant, a seawater desalination facility, and a multipurpose export port. At full capacity it aims to produce 270,000 metric tons of green hydrogen and up to 1.35 million metric tons of green ammonia per year for export markets.

The project’s scope has expanded substantially since Fertilizer Daily reported on the initial $4.7 billion filing in July. Annual ammonia capacity increased from 850,000 to 1.35 million metric tons, while capital expenditure more than doubled. The consortium projects up to 4,000 construction jobs at peak and approximately 1,800 permanent positions during a 50-year operating life. Chile’s strong Patagonian wind resources underpin the project’s economics, though scaling challenges and securing offtake agreements remain ahead.

Source: Hyvolution Chile