Phelan Green Energy plans USD-2.4bn green ammonia facility in Peru

Phelan Green Energy, a renewables developer owned by an Irish family but based in South Africa, on Friday announced plans for a USD-2.4-billion (EUR 2.21bn) green ammonia investment in Peru in parallel with the discontinuation of hydrogen projects in Chile, Egypt, and Spain.

The Cape Town-based company intends to build a large-scale green ammonia production plant in the Arequipa region where the Peruvian government has approved the concession of 4,000 hectares for this purpose. In addition, it has obtained a 50-hectare concession for the construction of a processing plant in the coastal port of Matarani.

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A team led by Paschal Phelan, founder and chairman of Phelan Green Energy, agreed the details of the project at a special meeting with Peruvian Prime Minister Gustavo Adrianzen and his Cabinet last week.

"Our goal is to produce the lowest-cost green energy in the world, ensuring a sustainable and economically viable supply to key markets in the EU, Japan, and Peru,” Phelan stated.

Phelan Green Energy has so far been working on major green hydrogen hubs in five international locations but will now consolidate its efforts into two locations and discontinue its hydrogen projects in Chile, Egypt, and Spain. This means that the company will focus on the Peruvian project and the one it is developing in Saldanha, South Africa.

By redirecting resources to those two locations, the company will be looking to scale up annual production to 1 million tonnes of green ammonia at each site, according to its latest announcement.

(USD 1.0 = EUR 0.922)