NeoGreen Hydrogen has signed a long term 75MW baseload power purchase agreement with the ANDE, the national electricity company of Paraguay.
The initial design concept is estimated to produce 10,000 tonnes per year of green hydrogen that will be converted into ammonium nitrate for use as part of NPK fertiliser blends.
The green fertiliser will be used to supply both the domestic market and regional customers.
The PPA agreed with the ANDE was struck at the lowest commercial rate, enabling the production of affordable green ammonia using electricity produced from Itaipu Hydroelectric Dam.
NeoGreen’s project will provide an estimated US$400 million of inward investment and generate local employment in both the construction and operational phases.
A final investment decision for the project is expected by the fourth quarter of 2023 and green hydrogen and ammonia production is targeted for mid-2026.
Miles Lewis, President of NeoGreen Paraguay, commented: “I would like to thank the team at the ANDE for all their assistance during the initial planning phase of this project.
“We now consider that we have a thorough understanding of the challenges and opportunities that Paraguay provides as they seek to fulfil their climate goals and, having assembled a consortium of partners, the signing of this PPA will allow us to accelerate development with a view to this initial project entering into production in early 2026.
“Simultaneously, it is our group’s intention to progress further technical studies aimed at substantially increasing capacity, as detailed in our initial Cooperation Agreement. We look forward to working with all our partners in delivering this exciting project.”
Felix Sosa, President of the ANDE commented: ‘’This agreement forms another important step in Paraguay’s green hydrogen roadmap and we look forward to working with NeoGreen and their partners to maximise the efficient use of our renewable energy resources within this emerging industry.”