Green ammonia project in Chile strengthens early mover position by securing water supply through recycled wastewater

PRESS RELEASE from MAE
8 January 2025

January 08, 2025, Chile – The green ammonia industry is beginning to take shape in Chile. The northern region of Antofagasta, where the Atacama Desert meets the Pacific Ocean, seems poised to yield the first results. MAE, the company behind the Volta green ammonia project, has taken a significant step forward in its development (of the project) by signing an agreement with Aguas Antofagasta, a regional water company. This deal ensures that 80% of the water needed for the project’s first phase will come from treated wastewater sourced from Mejillones, the northern Chilean city where the project will be located.

Currently undergoing environmental assessment, the Volta project has been under development for four years and is one of Chile’s most advanced green ammonia initiatives, and it is expected to become the first industrial-scale project to be realized. Chile, blessed with abundant natural resources, is well-positioned to lead the global green ammonia race. The nation’s northern deserts provide unparalleled solar irradiance, while its southern regions boast steady winds—key factors for the production of green ammonia.

A strategic hub for clean energy

Located in the Atacama Desert, Mejillones offers a prime location for the $2.5 billion Volta project. The initiative will involve the construction of a 600 MW solar park and a green ammonia plant capable of producing up to 600,000 tons annually, divided into two stages of approximately 300,000 tons each. The first shipments of green ammonia are expected in 2029.

Mejillones, already a strategic industrial hub, is the headquarters of major energy and chemical facilities and part of the Antofagasta mining district, home to the world’s largest copper (mining)operations. Its robust infrastructure—including Chile’s second-largest port, well-established road networks, and a reliable electricity grid—provides a critical advantage for large-scale industrial projects. Today, it has the opportunity to transition into a hub for green ammonia production, supporting global decarbonization efforts and aligning with the national goals established by successive governments.

The administrations of both Sebastian Piñera and his successor, Gabriel Boric, have supported the green hydrogen industry and its derivatives, such as ammonia. The Piñera government developed the National Green Hydrogen Strategy, while the current administration under Gabriel Boric introduced the Green Hydrogen Action Plan, further establishing the country’s commitment to becoming a global leader in this industry.

Chile’s strategic positioning in the green hydrogen sector also aligns with both domestic and international perspectives on green ammonia. There are strong prospects for its use both internally, to meet the country’s ambitious decarbonization goals, and globally, as part of global efforts to decarbonize industries such as maritime transport and energy.

Community engagement and environmental stewardship

Throughout the project’s four years of development, MAE has conducted an extensive community engagement process. During this process, the community highlighted the importance of protecting and improving the environmental standards of the Mejillones Bay. Local authorities, residents, and environmental and social organizations have long sought putting an end to the discharge of the city´s wastewater, which is currently discharged into the bay after only primary treatment.

MAE’s work with Aguas Antofagasta will ensure that this wastewater is treated and repurposed for industrial use, reducing pollution in the bay while addressing community concerns. The agreement marks a milestone for Mejillones, aligning progress with environmental sustainability and social responsibility.

At full capacity, the Volta green ammonia plant is expected to lead to a reduction of over 1 million tons of CO2 emissions annually —the equivalent of eliminating approximately 200,000 internal combustion-engine vehicles. Treated wastewater will cover 80% of the plant’s water needs during its initial phase, further minimizing its environmental footprint.

“We are very pleased to fulfill this commitment to the community while securing a sustainable water supply for our project,” said Gonzalo Moyano, CEO of MAE. “As a company driven by sustainability, we aim to bring a positive effect to Mejillones, improving the quality of life for its residents. Efficient water use and environmental protection are central to our mission, and this agreement marks a major milestone in achieving those goals.”

The Volta project represents a significant step forward for Chile’s energy transition and underscores the country’s potential as a global leader in green ammonia production. By leveraging its unique natural resources, engaging with local communities, and integrating sustainability into industrial processes, Chile is charting a path toward a cleaner, greener future.