Phelan Green Energy, chaired by Paschal Phelan, has unveiled plans to invest over $2 billion in Peru to establish a large-scale green ammonia production facility, marking a significant move in the global renewable energy sector.
The announcement came following detailed negotiations at a high-profile meeting in Lima, where Peruvian Prime Minister Gustavo Adrianzén and his cabinet approved the concession of 4000 hectares in the Arequipa region for the project. An additional 50-hectare concession was granted for a processing plant in the coastal port of Matarani.
Phelan Green Energy, known for its development of major green hydrogen hubs internationally, will consolidate operations into two primary locations: Arequipa, Peru, and Saldanha, South Africa. This strategic decision involves redirecting resources from hydrogen projects in Chile, Egypt, and Spain to enhance production capabilities in these high solar irradiation regions.
The facilities in Peru and South Africa are expected to collectively produce 440,000 tons of green ammonia annually initially, with plans to scale up to 1 million tons each per year.
“Our goal is to produce the lowest-cost green energy in the world, ensuring sustainable and economically viable supply chains to key markets in the EU, Japan, and Peru,” stated Paschal Phelan, emphasizing the company's commitment to meeting global demand for decarbonized energy amidst increasing climate concerns.
At a press briefing following the cabinet meeting, Phelan underscored the urgency of addressing climate change, calling for stricter carbon taxes and immediate global action. “The climate problem is escalating rapidly, and unless urgent measures are taken now, we may face consequences akin to those seen during global pandemics,” he warned.
Phelan Green Energy's expansion in Peru aligns with the country's efforts to harness low-cost solar energy for green hydrogen and ammonia production, supporting its goals for sustainable development and carbon neutrality.
