US hedge fund Hedonova has invested $16m in an energy storage plant in Chile’s Atacama region, 800 km north of the capital city, Santiago.
The energy storage system, due to be operational by the end of this month, operates on the CRYOBattery technology.
The technology uses air liquefaction technology where ambient air is cooled to -196°C.
The energy storage plant Hedonova has invested in can supply electricity to around 80,000 to 100,000 homes in Chile.
The Latin American country has enacted a new law on energy storage and electromobility, following its approval in parliament in October 2022.
The bill seeks to increase the country’s use of renewable energy particularly through the use of energy storage as a way to get around grid congestion.
According to SP Global, Chile is set to become one of the top three exporters of green energy by 2040.
Alexander Cavendish, CEO of Hedonova, said: “The total investment pipeline of the power plant is $160 million off which we have invested 10%.
“This is an integrated investment from our real estate and equipment financing portfolios.
Hedonova owns the land and has leased it to the power company and has also financed the CRYObatteries.
“We are also working with Chilean regulators to ensure the plan earns carbon credits that can be sold on the open markets.”