Sumitomo, Colbun ink green ammonia MoU in Chile

Chilean utility Colbun SA and Japanese diversified group Sumitomo Corp (TYO:8053) announced on Monday that they have formed an alliance to jointly study the feasibility of green hydrogen-to-ammonia projects in Chile.

The companies signed a memorandum of understanding (MoU) to define the scope and objectives of the alliance with a focus on development opportunities in the region of Antofagasta, northern Chile, and Magallanes down south.

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In Antofagasta, the pair will assess the feasibility of using Colbun’s Inti Pacha and other solar PV projects in the region as a source of renewable energy for the electrolysis process.

As for exporting hydrogen in the form of ammonia, the pair will study the feasibility of using logistics and port facilities in the city of Mejillones. Specifically, they will look into the facilities that are run by Interacid, Sumitomo’s subsidiary dedicated to importing sulphuric acid and fuels for the mining sector.

In the region of Magallanes, Colbun and Sumitomo will consider developing an ammonia project with a potential to produce 1 million tonnes per year. The feasibility studies there will be focused on port facilities, renewable energy generation and the development of infrastructure to produce hydrogen, among others, the companies said.

Taizo Hayakawa, President of Sumitomo Corporation Chile, said that their projects could supply green ammonia to Chile, Japan and the world.

Colbun set up its green hydrogen management unit in June 2022, focusing its activities on the domestic market as part of an offering to existing or new customers in need of decarbonisation. The company's second goal is to help position Chile as a relevant player in the global hydrogen industry, the utility added.