- The insurer recently signed a contract with the firm MAE for its Volta project, a pioneering initiative to position Mejillones and the Antofagasta region as one of the main production hubs of this industry in the country and Latin America.
April 1th, 2024— The green hydrogen and ammonia industry, key to the decarbonization of the economy, continues to advance in Chile. The insurer AVLA, in conjunction with Aon, a global professional services company, issued the first policies and guarantees required for onerous land use concessions in this sector by signing a contract with MAE, the firm developing the Volta project in Mejillones, Antofagasta region.
The Volta project, one of the most advanced in northern Chile, is currently undergoing an environmental assessment and is the basis for positioning Mejillones as a productive hub for this industry in the country and Latin America. The company contemplates the construction of a green hydrogen plant as an intermediate input to produce green ammonia, which, at total capacity, will contribute to reducing more than 1 million tons/year of CO2 emissions, equivalent to the pollution of more than 200,000 vehicles in the same period.
The plant's approximate production capacity is 600,000 [ton/year], divided into two stages of about 300,000 [ton/year] each. The first shipments are expected in 2027 and will target the local and international markets, mainly for the transportation, industrial, and agriculture sectors.
The energy transition and green fuels are an important focus for AVLA, a firm that, in the last year alone, has backed more than 30 projects in the renewable energy sector in Chile. "With 65 NCRE project policies issued by AVLA in 2023 in Chile alone and almost 100 at the Latin American level, we are constantly searching for projects that support, promote, and develop initiatives to advance on the path of energy transition. We are proud to be pioneers in the industry and support one of the most important companies at the national level for the development of green hydrogen and green ammonia", explains Gabriela Azócar, Country Manager of AVLA Chile.
"MAE's Volta project is opening a footprint on the road to transform Chile's green hydrogen and ammonia industry into a reality. Our country has great potential and must consolidate leadership, so it is very important the financial support that the sector receives from different areas, especially when it comes to pioneering initiatives like ours," said Gonzalo Moyano, CEO of MAE.
Franco Di Lucca, Head of South Cone at Aon, commented: "New forms of volatility, such as climate change, are generating an unprecedented reallocation of capital. This encourages us to promote sustainable development and innovation in clean energy. This project, in conjunction with AVLA, is an example of how we at Aon help our clients identify risks and opportunities, protect their businesses, achieve their ESG objectives, and help them make the best decisions."
Projections establish that, by 2030, Chile could be one of the most competitive countries in the world in the export of green hydrogen and derivatives due to its favorable access to renewable energy sources, such as solar or wind.
It is in this context that AVLA seeks to play an active role in promoting the energy transition agenda in the country and the region. Through the guarantees, the insurer provides this industry with an alternative tool for the development of its projects. AVLA has been promoting sustainable development for years, not only through the energy industry, but also by ensuring the proper closure of mines and helping companies to take responsibility for their environmental impact, for amounts more than US$ 1,990MM.
