Spain’s Ignis Energy has decided to scale back and pause a gigawatt-scale green hydrogen and ammonia project in Chile.
According to reports, the decision was made in response to the slower global pace of the hydrogen industry, even though the company “firmly believes that the industry will mature.”
In Tierra del Fuege, the Magallanes region, the company planned to build the first 2.25GW phase of a wider 4.5GW wind power network. Reportedly, the project would also feature 4GW of electrolysers to produce hydrogen and ammonia using renewable sources.
Ignis is now adjusting its timeline and project scope in response. Its initiative in Chile is under comprehensive review to assess its size, land use and potential sites. Despite these adjustments, the company denied any plans to withdraw from the Magallanes region.
In 2023, Ignis stated that the project would require approximately 100,000 hectares of land and later secured lease agreements covering around 50,000 hectares.
By January 2024, however, the company had terminated more than 13 lease contracts with landowners in Tierra del Fuego, signalling a shift in its development approach.
In 2024, KKR announced plans to invest up to €400 million to support Ignis in developing green hydrogen, ammonia, and other renewable technology projects.
As part of the partnership, the two companies agreed to jointly operate Ignis P2X, a newly established platform focused on advancing power-to-X projects in Spain and globally.
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