Green hydrogen megaprojects on three continents

Major hydrogen project announcements in Chile, Australia and Saudi Arabia indicate the fast growing opportunities and potential of this emerging energy source.

What is set to be one of Chile’s largest green hydrogen projects – so far at least – has been announced by energy minister Juan Carlos Jobet, with an installed capacity of up to 8GW to come onstream by 2027.

H2 Magallanes, an initiative of the French renewable developer Total Eren, will be located near the borough of San Gregorio in the Magallanes region of southern Chile, which is considered to have among the best wind resources in the world.

The project with direct access to the sea will comprise up to 10GW of wind capacity, which will be coupled to the hydrogen electrolysis capacity as well as a desalination plant, an ammonia plant and the necessary port facilities for supply both nationally and to the export market.

With the land secured, studies are kicking off in a partnership with the University of Magallanes with a view to starting construction in 2025. Projected outputs are 800,000t of hydrogen and 4.4Mt of ammonia for the export market annually.

“Magallanes is far from the markets but is at the centre of the solution against climate change and today is consolidating as a pole for the development of green hydrogen,” said Minister Jobet at the launch.

The project is the fourth for the region, which the minister noted is bringing in investments of more than $15 billion for more than of 13GW of wind generation and 10GW of electrolysis capacity with an expected production of more than 1Mt of green hydrogen per year by 2027.

Chile has made no secret of its ambition to become a global leader in the production and export of green hydrogen and with not only the wind resources in the south but also the solar resources in the north, is set to be among the forerunners in achieving sub-$2/kg prices before 2030.

Desert Bloom – water from desert air

Australia’s Northern Territory is set to be the location for what is claimed a breakthrough project and the country’s “only truly green commercial-scale hydrogen plant”.

Desert Bloom Hydrogen, which is being promoted by the local technology company Aqua Aerem, envisages up to 10GW of hydrogen capacity in modular and portable 2MW production units with an output at full capacity of around 410,000t of hydrogen.

With its location initially at Tennant Creek in the central part of Northern Territory, the project has access to major solar irradiation as well key pipeline, transport, and port infrastructure.

What sets it apart, however, is its intended use of Aqua Aerem’s water capture technology powered by off-grid solar that is claimed able to extract water from air, even in locations as dry as deserts.

“Our air-to-water technology, which solves this previously intractable water supply problem, is a world first; invented and developed here in Australia,” says Aqua-Aerem co-founder and CEO, Gerard Reiter.

“This technology will open the door for green hydrogen projects to be located where the best renewable power sources are available, which is generally in the driest areas of the planet.”

Desert Bloom expects to start hydrogen production for local power generation within two years and to achieve a price below $2/kg for export by 2027.

Aqua Aerem is backed by Sanguine Impact Investment, which is providing the capital for the project, and has executed an agreement with a Japanese gas buyer and distributor to invest in the project. Initial offtake will be by Territory Generation, the Northern Territory’s power utility.

Ammonia from Neom

A key feature of Saudi Arabia’s emerging smart industrial city Neom on the Kingdom’s northern Red Sea coast is the development of a future energy system, with one of the goals investment in green hydrogen.

A July 2020 agreement between Neom, Saudi power developer ACWA Power and industrial gas company Air Products set in motion plans for a world-scale green hydrogen-based ammonia production facility powered by renewable energy.

Supply of a 2GW electrolysis plant has now been awarded to thyssenkrupp Uhde Chlorine Engineers, which will model it on its large-scale 20MW alkaline water electrolysis module.

Dr Samir J. Serhan, Chief Operating Officer at Air Products, says this project milestone furthers the strong progress at Neom to deliver carbon-free hydrogen on a massive scale in the Kingdom and for the world.

“This project is the kickoff to become a frontrunner in the green hydrogen economy.”

The proposal is to integrate over 4GW of solar, wind and storage to produce 650t per day of hydrogen and 1.2Mt of green ammonia annually, with the intention to transport it to locations globally to be dissociated to produce green hydrogen for the transportation market.

The project is scheduled to start production in 2026.