Phelan Green Energy invests $2.4 billion in green ammonia in Peru

Phelan Green Energy has announced an investment of more than $2 billion in Peru to develop a large-scale green ammonia production facility. The $2.4 billion commitment was made during a special two-hour meeting with Peruvian Prime Minister Gustavo Adrianzén and his cabinet at the Presidencia del Consejo de Ministros del Peru in Lima. The Peruvian government has approved a 4,000-hectare concession in the Arequipa region, a strategic location for harnessing the low-cost solar energy needed to produce green hydrogen and ammonia. Despite the many tensions at home, the country is committed to securing and developing its energy system through various projects.

Project implementation and improvement

A concession of 50 hectares was also granted for the construction of a processing plant in the coastal port of Matarani. This project, classified as a “Necesidad Publica” by the Regional Council of the State of Peru, will benefit from special priorities to accelerate its implementation. Phelan Green Energy also announced the consolidation of its green hydrogen projects, now focusing on Arequipa in Peru and Saldanha in South Africa, while halting projects in Chile, Egypt and Spain to maximize production capacity in these two regions.

Production capacities and target markets

The facilities are designed to produce 440,000 tonnes of green ammonia per year, with plans to increase production to 1 million tonnes at each site. The investment is intended to meet growing demand for green ammonia in the European Union, Japan and Peru.

Statements and perspectives

Phelan Green Energy said the project is a major step towards becoming a leading global supplier of low-cost green energy. Paschal Phelan, CEO of the company, emphasized the importance of the project in ensuring a sustainable and economically viable supply of green energy. This investment represents a significant step forward for the renewable energy sector in Peru, strengthening the country’s position in the global green hydrogen and ammonia market.