Aker Clean Hydrogen and Mainstream Renewable Power have signed a letter of intent to explore the development of green hydrogen and low-cost ammonia production in Chile.
The move combines the newly-launched Aker Clean Hydrogen’s hydrogen project development capabilities and Mainstream’s position as a renewable energy developer in the South American country.
Mainstream’s 1.3GW Andes Renovables wind and solar generation platform is currently in construction and the first phase is due to commence commercial operation later this year.
As well as the Andes Renovables platform, the company has an extensive additional project development portfolio, more than 1GW of which is earmarked for this green hydrogen and ammonia collaboration.
The two companies will collaborate on developing a complete and commercially viable green value chain in Chile, using renewable power from Mainstream’s portfolio of wind and solar park projects in the country.
On January 19 2021, Aker Horizons agreed to acquire 75% of Mainstream.
The transaction is subject to customary approvals and financial closing, expected in the second quarter of 2021.
Aker Clean Hydrogen is a wholly owned subsidiary of Aker Horizons, dedicated to producing green hydrogen at industrial scale.
It is a pure-play industrial clean hydrogen producer to serve a fast-growing global market.
With a proven execution model and unique end-to-end asset integration and optimalization capabilities, Aker Clean Hydrogen aims to emerge as the most efficient hydrogen value chain integrator on a global scale.
It has a portfolio of nine clean hydrogen projects and prospects with a total net capacity of 1.3GW under development, and additional pipeline and opportunities of 4.7GW.
Based on a proven execution model with scalability, the company aims to reach a net installed capacity of 5GW by 2030.
Aker Horizons chief executive Kristian Røkke said: “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.”
Chile has stated an ambition to produce the most cost-efficient green hydrogen in the world by 2030.
The green ammonia will be utilized by several industrial end-users locally in South America, and also exported to other markets.
Mainstream’s chief executive for Latin America Manuel Tagle said: “With its excellent wind and solar resources and technological know-how, Chile has the potential to lead the world in the production of the world’s most cost efficient green hydrogen.
“As the country’s leading renewable energy company, Mainstream is delighted to be collaborating with Aker Clean Hydrogen by bringing more than 1GW of our top-class wind and solar asset pipeline to this partnership, thereby taking a leading role in the decarbonisation of the energy, industrial and mining sectors in Latin America.”