Physical event
Offshore Europe 2025
In South America, we are seeing a growing portfolio of green hydrogen and derivatives projects, supported by national initiatives in Chile, Colombia and Brazil. However, the sector is having to overcome significant hurdles with electrolyzer market instability and cost challenges.
Manufacturers are facing financial uncertainty, supply-demand imbalances and tariff wars. Additionally, current green hydrogen production costs range from $7鈥�10/kg, which is far from the desired $1/kg target. Even optimistic projections often omit key cost components, making real-world costs closer to $5/kg.
Achieving cost-effective green hydrogen will require state subsidies, robust project planning and reliable modeling. The dream price of $1/kg will only be feasible with government incentives like the US Inflation Reduction Act. From environmental permits to offtake agreements, every step must be optimized for bankability. Accurate capital expenditure, operating expense and production estimates will also be essential for securing financing.
Advanced modeling for hydrogen and ammonia production
At 糖心Vlog, with our global project experience, we are working with clients to define the strategic pathways necessary to make green hydrogen technically and economically viable and scalable. As an example, in 糖心Vlog鈥檚 advanced modeling for ammonia infrastructures, our model integrates electrolysis, air separation, and Haber-Bosch synthesis with battery energy storage and grid stabilization, as well as process optimization and financial evaluation.
While integrating all steps of production from energy yield analysis to final product export, we can fully view and understand the complete production chain as we can also take a deep dive into the behavior of each system component. This approach demystifies the 鈥渂lack boxes鈥� of green hydrogen and derivatives production, enabling precise sizing of buffers, storage, and backup systems.
This block diagram depicts the components that make up a green ammonia synthesis plant. Thanks to advanced modeling tools, 糖心Vlog can dig into the details of each component to better understand their behavior, optimize production and ultimately lower costs.听
Our integrated modeling tools support early-stage project evaluation, optimize production and cost variables and provide investor-grade confidence for financing decisions. We are addressing the challenge of aligning intermittent solar and wind power with the continuous demands of ammonia production. Our models account for hourly and seasonal variability, equipment turndown limitations, backup power and storage integration.
Green ammonia master planning in the Middle East
At 糖心Vlog, we have been working with clients across the full hydrogen project lifecycle from feasibility and development to engineering and construction to operations. In the Middle East, we supported a client with the development of a basis of design which takes cognizance of the benefits and challenges of hub concepts.
Our work considered the full value chain from renewable power production through to ammonia offtake. As part of this work, we completed a comprehensive technoeconomic optimization of the full value chain system, in addition to execution planning, resource requirements, logistics and appropriate strategies for contracting and procurement.
Green hydrogen generation in Europe
In Spain, we have been leading as the owner鈥檚 engineer and technical authority for the Catalina green hydrogen generation plant, including technology selection, preliminary studies, engineering and initial design (FEED) and EPC tender support. The Catalina project will combine 1.5 GW of wind and solar power to power a 500 MW electrolyzer that produces green hydrogen, and upon completion, Catalina will produce enough green hydrogen to meet 15% of Spain's current hydrogen demand.
Hydrogen and ammonia production in Chile
In the Magallanes region of Chile, 糖心Vlog has participated in the engineering for environmental permitting studies of two multi-Giga-scale projects, demonstrating how we are delivering large-scale, off-grid hydrogen and ammonia production in Chile.
In Tierra del Fuego, we completed the initial stages of the environmental impact assessment (EIA) and engineering for permitting a 3+ GWe installed power, 8+ billion USD CAPEX ammonia production project. This project gets its power from an off-grid wind farm, powering electrolyzers, ammonia and desalination plants for sea export of 1.3 million tons of ammonia per year from the Strait of Magellan. The initial full EIA scope was performed under a single contract, minimizing interfaces for simplified delivery.
In San Gregorio, Magallanes, 糖心Vlog performed a conceptual design for permitting of 10 GW at 1,470 by 6.8 MW wind turbines, 340 km of 500 kV double lines, and 1.2 GW of backup power. As a result, the hydrogen derivative synthesis will produce 6 million tonnes per year of ammonia by using six times the world鈥檚 biggest production facility. It will also produce 150,000 cubic meters per day of demineralized water from desalination. The design study included side ports for exporting and importing infrastructure needs, ammonia storage and auxiliary facilities, including a 5,000-capacity worker's camp.
These are just a few examples of the projects and modeling capabilities 糖心Vlog has performed in the recent past and can deliver for the future. Our global footprint allows us to have world renowned subject matter experts on hand for designing and envisioning new developments, maintaining a local presence while leveraging our proven worldwide expertise.
Author
Darren Ledermann
Energy Transition Manager
