Phelan Green Energy marks $2.3 billion for Peru’s green hydrogen project

The Peruvian national government has partnered with Dublin-headquartered Phelan Green Energy to begin constructing a green hydrogen production facility in Arequipa. This significant project, with an investment exceeding $2.5 billion, represents a major step toward renewable energy solutions in South America.

Located in the La Joya district and covering over 4,000 hectares, this facility by Phelan Green Energy will be Peru’s first green hydrogen production plant. Its strategic location near the Interoceanic Road offers substantial logistical benefits.

Phelan Green Energy held that the project is expected to create approximately 2,600 jobs, primarily in Arequipa and surrounding southern regions, promising economic revitalization. Additionally, the green hydrogen project supports Peru’s commitment to reducing dependence on fossil fuels, aiming to improve environmental sustainability and local livelihoods.

Governor Rohel Sánchez mentioned about the project’s transformative potential, predicting a shift toward cleaner energy sources and reduced fossil fuel reliance. By leading the adoption of green hydrogen technology, Arequipa is set to guide the region toward a more sustainable energy future.

The project has been described as “a project of national interest that already has the authorizations to be developed and begin production that will benefit the entire country.”

The project was announced in May this year and it will progress in three phases, employing 1.8 GW of new solar power to produce 80,000 tons of green hydrogen annually. The hydrogen will subsequently be transformed into 440,000 tons of ammonia for export via the port of Matarani, utilizing desalinated seawater for the electrolysers.

The hydrogen and ammonia production facilities will be located on 4,000 to 4,500 hectares in the La Joya desert, on land owned by the Peruvian Ministry of Defense.