Explosives company Enaex has signed a contract with US engineering company KBR to use its green ammonia technology at the planned Hyex green ammonia project in northern Chile.

Enaex currently imports the ammonia feedstock for its production of ammonium nitrate in the country, and the firm claims these imports represent 90pc of its total carbon footprint for the process. The firm launched the Hyex project with French energy company Engie in 2021 as a measure to decarbonise its operations.

Hyex will be developed in two phases. The first phase will produce up to 18,000t/yr of green ammonia using hydrogen from 26MW of electrolyser capacity and is scheduled for commissioning by 2025. The second aims to ramp up production to 700,000t/yr of green ammonia from 2.8GW electrolyser capacity by 2030, with an eye toward global exports.

While a slow permitting process has hindered development for a number of projects in Chile, Hyex has received initial environmental approval. The project was awarded government funding from a pot of $50mn in December 2021 and has since progressed to Feed.

18,000t/yr — Planned production capacity of Hyex phase 1

Chile is expected to be a major future exporter of green hydrogen owing to strong solar energy potential in the north and wind resources in the south. The country has pledged to bring its first ten green hydrogen projects online by 2026 and plans to publish its green hydrogen action plan up to 2030 following public consultation in July this year.

Chile is attracting international attention for green hydrogen development. The government’s economic development agency, Corfo, has this month agreed the terms of a $400mn loan with the Inter-American Development Bank (IDB) announced at Cop27. The agency also secured additional $350mn loan from IDB and the World Bank, which aims to boost investment in low-carbon technologies including green hydrogen.

Japanese conglomerate Sumitomo has signed a memorandum of understanding with Chilean energy firm Colbun to collaborate on green hydrogen and ammonia in the country with a focus on exports.

Sumitomo is part of a consortium of Japanese companies undertaking a feasibility study on green hydrogen and ammonia supply from Chile to Japan. The study has received support from both Japan’s Ministry of Economy, Trade and Industry and Chile’s Ministry of Energy.

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Author: Polly Martin