TotalEnergies, through its Chilean subsidiary TEC H2 MAG, has submitted a request for an environmental permit for a $16 billion green hydrogen and ammonia project in southern Chile, according to a regulatory filing made public on Monday. If approved, the project would become one of the most significant clean energy developments in Latin America and a major step toward Chile’s national decarbonization strategy.

The project is expected to begin operations in 2030 and would be developed in the Magallanes region. It includes the construction of a wind farm to power seven green hydrogen electrolysis facilities. These centers will use renewable electricity to separate hydrogen from water molecules through electrolysis, producing green hydrogen without carbon emissions. The proposal also outlines plans for a desalination plant to supply the water needed for electrolysis, an ammonia plant for processing the hydrogen into a more transportable form, and maritime infrastructure to facilitate global shipping.

According to the project’s website, the environmental review process is projected to take approximately two years. If the permit is granted, construction could begin as early as 2027. The ammonia plant, a core element of the project, will be commissioned in stages and is expected to produce up to 10,800 metric tons of ammonia per day once fully operational.

Chile has become a focal point for green hydrogen initiatives due to its abundant renewable energy resources, including strong wind conditions in the south and high solar potential in the north. The Chilean government has aggressively promoted green hydrogen development through incentives and strategic planning, aspiring to position the country as a global exporter of clean energy. However, some industry leaders have noted that despite Chile’s early momentum, challenges such as lengthy permitting procedures and insufficient infrastructure have slowed the pace of progress.

The TotalEnergies project represents a significant vote of confidence in Chile’s renewable energy ambitions. By producing hydrogen using wind energy and converting it into ammonia, the project offers a scalable, export-ready solution that aligns with global efforts to transition away from fossil fuels. Ammonia, a hydrogen carrier, is already used widely in agriculture and industry, and is gaining attention as a cleaner alternative for shipping fuel and energy storage.

If fully realized, the project would not only enhance Chile’s standing in the global green hydrogen market but also create local employment opportunities and contribute to the country's environmental goals. It would mark a major step in reducing global emissions and advancing the clean energy economy, underscoring the role of multinational energy firms in driving sustainable development.