Green hydrogen developer Neogreen has signed a long-term 75MW baseload power-purchase agreement (PPA) with Paraguayan national electricity company Ande for a green hydrogen and fertiliser project.

The project aims to produce 10,000t/yr of green hydrogen, which will be converted into ammonium nitrate for fertiliser feedstock. The fertiliser will supply both Paraguay’s domestic agricultural market and exports to neighbouring countries via river. Neogreen plans to site the project near the port at Tres Fronteras—where Paraguay, Brazil and Argentina converge.

Ande has agreed to supply electricity from the Itaipu hydroelectric dam at “the lowest commercial rate”, according to Neogreen. With the PPA in place, the developer will progress to Feed.

10,000t/yr – Estimated production from Tres Frontera project

Neogreen plans to take FID on the project at the end of 2023, with first production targeted for mid-2026.

Neogreen has a 5.8GW development pipeline, with $8.7bn of investment spread across seven countries. In November 2022, the firm announced it had signed a land reservation agreement for its project in the port of Sines in Portugal, which will produce green hydrogen and e-methanol for export to western European markets.

Ande has previously signed a 120MW PPA with developer Atome for its Villeta green hydrogen and ammonia project. The developer aims to take FID in Q2 2023, with startup in 2025.

Atome has recently launched a joint venture with Cavendish, the renewable energy arm of Costa Rican automotive firm Grupo Purdy, which will develop projects in Central America and the Caribbean.

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Author: Polly Martin