RWE Renewables, a subsidiary of the German energy company RWE AG, has started work on its first green hydrogen project in Chile, with plans to add approximately 835 MW of electrolysis capacity. The project, known as Vientos Magallanicos or the Winds of Magallanes, will also include 1 GW of wind farms to supply electricity for the electrolysis process. According to the company’s statement, RWE intends to use the plant to generate about 475,000 tonnes of ammonia yearly for export to international markets.

Furthermore, the company developed a pre-feasibility study of a prototype in 2021, to comprehend the whole value chain of projects of this type in the Magallanes region. The Vientos Magallanicos project is still in its early stages of development. RWE claims to be in discussion with the mayor of Laguna Blanca and the regional government and will soon start approaching the local communities. The company anticipates that the facilities will begin operations after 2030. According to Alfredo Zanartu Stambuk, the company’s country manager, RWE Renewables has a portfolio of 2.8 GW of wind and solar projects to build in Chile in addition to Vientos Magallanicos. 

Earlier this month, RWE  announced intentions to build a 600 MW solar project as part of its plans to expand its solar business into the UK. In addition to solar power generation, battery storage, onshore wind, and animal husbandry, the Tween Bridge Solar Farm, which is situated between Yorkshire and Lincolnshire, would also support these activities. The project, which is expected to begin in 2029, would support one of the largest lowland sheep farms in the UK.

REGlobal’s Views: With its high solar and wind potential and many renewable energy projects in the pipeline, Chile is ideally placed to be a major green hydrogen hub in the South American region.