Aker Clean Hydrogen and Mainstream Renewable Power have signed a Letter of Intent (LOI) to explore the development of green hydrogen and low-cost ammonia production in Chile, combining Aker Clean Hydrogen’s hydrogen project development capabilities and Mainstream Renewable Power’s position as a leading renewable energy developer in the South American country.
The two companies will collaborate on developing a complete and commercially viable green value chain in Chile, using renewable power from Mainstream Renewable Power’s portfolio of wind and solar park projects in the country.
"Chile’s stable institutions, in addition to responsible fiscal policy, controlled inflation and multiple international trade agreements, make Chile an ideal location for foreign investment," said Juan Carlos Jobet, Minister of Energy and Mining of the Chilean Government.
Mainstream Renewable Power’s 1.3 GW Andes Renovables wind and solar generation platform is currently in construction and the first phase is due to commence commercial operation later in 2021. As well as the Andes Renovables platform, the company has an extensive additional project development portfolio, more than 1 GW of which is earmarked for this green hydrogen and ammonia collaboration.
Aker Clean Hydrogen is a wholly owned subsidiary of Aker Horizons, dedicated to producing green hydrogen at industrial scale. The company has been set up to design, build own and operate major hydrogen facilities all over the world.
"Hydrogen will play a vital role in accelerating decarbonisation, as it has the potential to significantly cut CO2 emissions by replacing fossil fuel through clean hydrogen and ammonia production and reduce the carbon footprint of industry users," said Kristian Røkke, Chief Executive Officer of Aker Horizons.
Chile has stated an ambition to produce the most cost-efficient green hydrogen in the world by 2030. The green ammonia will be utilised by several industrial end-users locally in South America, and also exported to other markets.
The two companies will have unique access to additional opportunities through extensive local competence, track record and relationships in the country, which Mainstream Renewable Power first entered back in 2008.
"Chile’s potential to become leaders in the production and export of green hydrogen, green ammonia and synthetic fuels will be key for the decarbonisation of Chile and the planet, especially in hard-to-abate sectors, such as industry, heavy-duty transport, and maritime transportation. Our National Green Hydrogen Strategy is beginning to be implemented to translate our vast renewable resource potential into competitive clean energy investment," said Minister Jobet.
On 19 January 2021, Aker Horizons, a Norway-based investment company dedicated to investing in companies that generate renewable energy or technologies that significantly reduce emissions, announced an agreement to acquire 75% of Mainstream Renewable Power. The transaction is subject to customary approvals and financial closing, expected in 2Q2021.
