French energy giant TotalEnergies (NYSE:TTE) has officially applied for an environmental permit in Chile to develop a $16 billion green hydrogen and ammonia facility, marking a significant step in the country’s clean energy transition. The project, led by TEC H2 MAG, TotalEnergies’ Chilean subsidiary, is set to begin construction in 2027, with full operations expected by 2030.
A Landmark Initiative in Renewable Energy
The facility, located in San Gregorio, will integrate 7 GW of wind power, seven electrolyzers, a seawater desalination plant, and a state-of-the-art ammonia synthesis unit. Once operational, it is projected to produce 10,800 metric tons of ammonia per day, catering to global markets, including Europe and Japan.
Chile’s National Green Hydrogen Strategy, launched in 2020, aims to position the country as a leading exporter of clean hydrogen, targeting 25 GW of electrolyzer capacity by 2030. The Atacama region, known for its high solar and wind capacity factors, provides an ideal setting for large-scale hydrogen production.
Challenges and Global Impact
While Chile has emerged as a key player in green hydrogen, slow permitting processes and infrastructure limitations have hindered progress. The project’s environmental review is expected to take two years, with concerns raised over desalination impacts on local ecosystems.
TotalEnergies’ initiative aligns with global decarbonization efforts, competing with Saudi Arabia’s NEOM project and Australia’s Asian Renewable Energy Hub. If successful, it could reshape the clean energy landscape, reinforcing Chile’s role in sustainable fuel exports.
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TotalEnergies hq on wikipedia by Remontees
