The French company officially submitted its H2 Magallanes initiative to the Environmental Impact Assessment System (SEIA). As another new milestone in Chile’s energy transition strategy, the record US$16 billion investment positions the Magallanes Region as a key clean energy production hub.
Total Eren, a subsidiary of France’s TotalEnergies and an InvestChile client, submitted its H2 Magallanes project, involving an estimated investment of US$16 billion, to the Environmental Impact Assessment (EIA) system.
H2 Magallanes is the largest green hydrogen and green ammonia initiative submitted in Chile, far surpassing the other projects announced to date.
Located on 11,500 hectares of public land in the Municipality of San Gregorio in Chile’s Magallanes Region, the initiative includes 10 GW of wind power generation capacity.
This renewable wind energy will power an electrolysis plant to produce green hydrogen, a raw material for manufacturing green ammonia.
Large-scale energy infrastructure
The project involves unprecedented infrastructure for southern Chile:
- 10 GW of installed wind capacity, approximately 608 wind turbines of 16.5 MW each
- Desalination plant that uses seawater to supply the electrolysis processes and has a production capacity of up to 3,700 liters per second
- Electrolysis plant to produce over 800,000 tons of green hydrogen annually
- Green ammonia plant with an estimated production capacity of 4.4 million tons per year
- Multipurpose port to export the finished product in addition to additional logistics infrastructure, including roads, substations and internal transmission lines
The project will take place in three phases. The first phase involves 1.5 GW of wind capacity and a 1 GW electrolysis plant; the second phase will increase wind capacity to 5 GW; and the third phase will further increase wind capacity to the planned 10 GW.
Magallanes: A new energy hub
The company chose Magallanes for its exceptional wind conditions and land availability, features that have led many companies to set their sights on the area for renewable energy projects.
According to Total Eren, «The local wind conditions allow for stable, efficient production year-round,» making Magallanes an ideal location for a plant of this size.
Additionally, the Regional Government promotes a Green Hydrogen Strategy for Magallanes, focusing on attracting investment, supporting employment and training, and developing enabling infrastructure.
Positive externalities and anticipated impact
Total Eren estimates that the project will employ over 5,000 people at its peak construction phase and that ongoing operations will require approximately 650 employees.
The company’s proposal also involves the development of community infrastructure, job training programs and territorial connection projects.
Additionally, the port it plans to build would be available to third parties, thereby enhancing the region’s connectivity and opening up new logistics and trade opportunities.
Green ammonia: The exportable product and key to decarbonization
Green ammonia, a molecule produced from green hydrogen and nitrogen captured from the air, is easily transportable in liquid form. It can be used as fertilizer or a clean fuel in emission-intensive industries, like shipping.
H2 Magallanes plans to export its production via ships that will dock at the port that is part of the project.
The primary target markets are Asia and Europe, which have already expressed interest in importing green ammonia as part of their energy transition strategies.
Environmental assessment: Critical for project feasibility
Submission to the EIA system marks the beginning of the environmental assessment process, which includes studies on biodiversity, impact on local communities, water use and emissions.
The company has undertaken monitoring and information gathering initiatives since 2021 to ensure that early design stages consider sustainability and mitigation criteria.
Strategic implications for Chile
This project aligns with the Energy Ministry’s National Green Hydrogen Strategy (2020), which aims to make Chile a world leader in clean hydrogen production and export.
The scale of H2 Magallanes, along with its potential for production linkages, technology transfer, and geopolitical positioning, makes this project a concrete step toward Chile’s goal.
The company reports that construction on the first phase of the project could begin mid-decade, pending approval of the environmental permits.
Start-up is estimated for 2030, the same year green ammonia production and export is expected to begin.
In parallel, Total Eren will continue developing its strategy for community engagement and socializing the project with local, regional and national stakeholders.
This type of initiative diversifies Chile's energy matrix, opening the door to new industries, jobs, and capabilities that will help Chile become a hub for clean energy exports.
For more information on this project and other clean energy investment opportunities, visit www.investchile.gob.cl.
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