Green Ammonia Co-Combustion Project
Guacolda Energía is the owner of the largest thermoelectric power plant in Chile, located in the Atacama region, with an installed capacity of 760 MW and TG 58 MW. The Company is committed to exploring and evaluating technologies for reducing carbon dioxide (CO2) emissions from its production process and is currently studying the technical and economic feasibility of co-firing mineral coal with green ammonia.
This co-combustion (co-firing) does not require significant modifications to the existing facilities, which would allow the Company to continue using its current assets, preserving its base energy production capacity (24×7) and maintaining local jobs.
Green ammonia is produced from green hydrogen and nitrogen extracted from the air, which is returned to the atmosphere after the combustion process. When burned, green ammonia does not emit CO2, significantly reducing the emissions of the thermoelectric plant, while also decreasing the formation of particulate matter and sulfur dioxide.
In 2022, Guacolda signed a Memorandum of Understanding with Mitsubishi Heavy Industries (MHI) to assess the feasibility of co-firing green ammonia at the thermoelectric plant. During 2023 and 2024, MHI conducted a study on the supply of burners and other necessary equipment for co-firing green ammonia at a 30% rate in 2 of its 5 units (30% ammonia and 70% coal), with no issues detected.
Currently, a burner based on these results is being developed, and between 2025 and 2026, a detailed plan for the conversion will be implemented. In the future, Guacolda is considering increasing the co-combustion rate to 50% across all 5 of its thermoelectric units.
Additionally, the Company has signed an agreement with a developer that is driving a local green ammonia production project, positioning itself as a strategic enabler in the development and export of this chemical compound in the Atacama region, as well as its distribution in the local market. It is important to note that ammonia is not only used in energy production but also for the manufacture of fertilizers and industrial explosives.
Guacolda's infrastructure offers significant advantages for achieving synergies in the development of green ammonia, reinforcing its commitment to sustainability and Chile's transition to a safer energy model, with lower emissions, while ensuring the stability of the national electricity system.