Verano Energy plans a green hydrogen giga project in Chile

Latin America-focused renewables firm Verano Energy, best known for developing and building solar photovoltaic farms in the region, has announced a multi-phase 25-GW green hydrogen development in Chile.

The firm said that the new giga project -- Los Amigos del Verano -- will entail an initial investment of USD 2.9 billion (EUR 2.64bn). The plan is to build two 2.5-GW electrolysis-based hydrogen plants during each of the first three phases, and a set of four 2.5-GW plants in phase four.

Do you know we have a daily hydrogen newsletter? Subscribe here for free!

The hydrogen production complex will be located in the Taltal commune in Chile’s northern region of Antofagasta. It will also feature a desalination plant to secure the water needed for the electrolysis process. Verano Energy said that the resulting hydrogen and ammonia would be transported by a 100-km (62.1 miles) pipeline to the coast to a marine storage and distribution facility.

It is unclear what renewable energy source will be used to power the electrolysers. Verano Energy CEO Dylan Rudney said that the project is strategically located in the Atacama Desert, highlighting the area's wind and solar resources availability which can translate into "the world's lowest" levelised cost of ammonia.

Construction is expected to commence in 2025. Phase one would come into operation in 2027 and phase four in 2033, the announcement reads.

Verano Energy also announced a mutual collaboration agreement with German technology expert Siemens AG (ETR:SIE) for the development of green hydrogen projects.

(USD 1.0 = EUR 0.911)