Chile defense ministry greenlights Magallanes maritime ammonia terminal

The armed forces department of Chile’s defense ministry granted a local ammonia project company the right to build and use maritime logistics infrastructure in southern Magallanes region.

Permission was awarded to Sociedad de Inversiones Albatros, a member of local hydrogen association H2 Chile.

Under the terms of the concession agreement, which expires June 2044, the company is authorized to build and operate, in Clarencia bay, a multi-buoy terminal, pipelines and a manifold station. One of the pipelines is 24-inches in diameter and associated with planned desalination of 9,916m3/y of seawater. Another is 18 inches in diameter and for the dispatch of ammonia to vessels. 

Construction is estimated to take 29 months and associated surface area is 9,247m2. Infrastructure is geared to vessels of 200m in length and with 50,000 gross register tonnage, according to an extract of a decree published in the official gazette. 

According to H2 Chile information, Albatros is partnering with Danish renewables investor CIP and global project developer Alfanar on an initiative called Llaquedona Green Hydrogen. 

The feasibility-phase project, which will need an environmental license and multiple other permits, involves a wind-powered 800MW fleet of electrolyzers to produce ammonia for exportation. 

Planned wind capacity is 1.16GW and hydrogen production 80,000t/y, according to information in the BNamericas project database.

Llaquedona is one of multiple hydrogen derivative projects planned for Chile. Publicly available details on many are limited. 

Green hydrogen projects have begun entering the environmental review system in Chile and pickaxes could start swinging this half of the decade. Associated challenges include getting environmental licenses, driving down costs and securing offtakers.

Two projects under environmental review are planned for Magallanes: HNH Energy (green ammonia, 1.4GW wind, 1GW electrolysis) and Cabo Negro/Faro del Sur from HIF Global (e-fuels, 384MW wind, 230MW electrolysis).

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