Chile’s renewable power developer Verano Energy has inked a collaboration agreement with Siemens for the development of over 20 gigawatts green hydrogen production capacity in the Atacama desert.

The $2.9 billion Los Amigos del Verano project will be developed in four phases. The companies plan two 2.5-GW electrolysers in each of the first three phases. At the final stage, a set of four 2.5-GW electrolysers would be commissioned, taking the total annual project capacity to 25 GW, Kallanish learns.

Verano Energy said in a press release the hydrogen production complex will be located in Chile’s northern region of Antofagasta, taking advantage of the “world’s best solar resource on the planet.”

The green hydrogen produced at the complex will be transported via a roughly 100-kilometre pipeline to a marine storage and distribution facility along the coast. Electrolysis will be mostly powered by solar energy, with production of both green hydrogen and green ammonia targeting the export market. The development will also include desalination plants.

Verano Energy expects construction in the Taltal commune to start in 2025, with Phase 1 entering into operation in 2027. Phase 4 is slated to come online by 2033.

The company claims a portfolio of nearly 100 projects, targeting 3 GW renewable capacity and 26 GW of green hydrogen capacity.