June 26, 2024 [Gasworld]- Global investment firm KKR and Spanish-based renewables group IGNIS are to launch a Power-to-X (P2X) platform to develop green hydrogen and ammonia for industrial applications.
As part of the joint venture, KKR will provide up to €400m to develop and build future projects. Both companies will own 50% each of IGNIS P2X when launched, which will start with a global pipeline of P2X and renewable projects.
IGNIS P2X will develop green hydrogen, ammonia, e-methanol, e-fuels and SAF production plants serving blue chip corporates active in refining, steel, chemicals, fertiliser, among other sectors, as well as traditional renewables, largely wind and solar, associated with the hydrogen and ammonia projects.
Projects will be located near large off-takers, providing a critical enabling technology for the decarbonisation of hard-to-abate sectors.
The platform includes a pipeline of around 20 gigawatts (GW) of P2X projects across Spain and other selected countries, as well as more than 10 GW of advanced and early-stage renewables in Spain and additional renewable projects globally, to be developed by a dedicated P2X team.
Ryan Miller, Managing Director in KKR’s European Infrastructure team, said IGNIS is a leader in renewables in Spain, with an ‘industrial mentality’, differentiated P2X pipeline, and experienced management team.
He said, “We believe this platform will play a critical role in the decarbonisation of heavy industry in Spain and internationally, driven by favourable regulatory tailwinds and its strong industrial integration with blue chip corporates.”
Antonio Sieira, IGNIS CEO, said the agreement is an important milestone with KKR and strong endorsement of its development work around P2X.
He said, “Their financial acumen, high performing team, as well as their leadership in energy transition, are an extraordinary asset for the development of such a strategic business as P2X. Additionally, IGNIS will continue to focus on its integration across the renewables value-chain and in projects for energy intensive industries.”
IGNIS’ development portfolio includes more than 300 renewable projects in ten countries, while also managing around 6.6 GW of power assets for third parties as the largest independent energy manager in Spain.
Last week IGNIS signed an agreement of intent to develop a project for processing green hydrogen and ammonia from renewable sources in Castello de la Plana. The three-phase project plans to produce up to 800,000 tonnes per year of green ammonia, which will be mainly used to decarbonise industrial consumption in Europe.
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