The global energy firm heating up Latin America's green hydrogen race

Global energy company AES Corp has positioned itself as one of the pioneers of green hydrogen development in the Americas. 

Its flagship project so far is a US$4bn complex in Wilbarger County, Texas, which is due online in 2027 and will boast 1.4GW of electrolysis capacity from wind and solar power. 

The company is also looking to expand its green hydrogen footprint across Latin America. Here are three projects under development by AES subsidiaries in Brazil, Colombia and Chile. 

BRAZIL

AES is one of six companies that have a pre-contract for the production and sale of hydrogen and green ammonia at the Pecém industrial complex in Brazil's northeastern state of Ceará. 

The company has already completed an environmental impact study as it seeks a license to proceed with the initiative. 

The project is slated to occupy 80ha at Pecem's export processing zone. AES envisages the production of 800,000t/y of green ammonia at the facility, sourced from 2.5GW of electrolysis capacity. 

Investment in the project is expected to range from US$2bn to US$4bn while its development is seen taking up to four years.

COLOMBIA

AES Colombia has plans to produce 800,000t/y of ammonia utilizing electrolysis from 1.1GW of wind capacity in the northern department of La Guajira. 

The company expects overall investment to exceed US$1bn with the start of operations slated for late 2028 in a best-case scenario. 

According to AES Colombia general manager Federico Echavarría, the firm plans to turn La Guajira into a hydrogen export hub. 

"This is a long-term strategy we have in the country, but we see the tremendous potential the region could have for hydrogen," Echavarría told The Energy Year. "If we work with the government, the communities and the different stakeholders, we believe that La Guajira could be one of the best places in Latin America for developing hydrogen."

CHILE

Meanwhile, a final investment decision is still pending for AES Andes' proposed Adelaida facility in Chile. Earmarked for Mejillones, in the northern Antofagasta region, the project would comprise a 2.5MW electrolyzer with capacity to produce up to 1,000kg/d of green hydrogen. 

Capital expenditure for the project is estimated at US$10mn. AES Andes has previously said its goal was to bring the project online in 2024. 

The company issued a call for expressions of interest from potential offtakers last year as it seeks to meet demand from local mining and port companies. 

In a quarterly report published earlier this year, AES Andes said it was working with a "major international hydrogen producer" on plans to develop a large-scale green ammonia project after signing an MOU for feasibility studies.