Construction imminent for CIP’s renewable ammonia project in Mexico

In The Isthmus of Tehuantepec in Mexico, Copenhagen Infrastructure Partners (CIP), through its subsidiary Helax, is developing a renewable hydrogen and ammonia plant that is set to come online in 2028. The project aims to develop 3.7GW of renewable energy (1.2GW wind & 2.5GW solar) to power 2.1GW worth of electrolyser units, enabling the production of about 900,000 tons per year of renewable ammonia.

The project, which was initially announced in December 2023, is located in the economic hub of Ciudad Ixtepec and is part of a government-led initiative to bolster the region’s economic and environmental infrastructure. The hydrogen and ammonia produced from the project will target marine fuel markets.

CIP will work collaboratively with the federal, state and municipal authorities in the planning and execution of the project, which represents a total investment value of $10 billion. Media outlets report that construction work is expected to commence in 2026, with public consultations and Indigenous consultations currently underway. Helax is one of a number of alternative fuels projects being developed by CIP as part of its €3 billion Energy Transition Fund (CI-ETF), which has so far secured a pipeline of 10 million tons per year of low-emission ammonia in a variety of global locations.

CIP & ABO Energy: renewable hydrogen & ammonia production in Canada 

CIP has also acquired a 90% stake in Toqlukuti’k Wind & Hydrogen, a large-scale onshore wind and hydrogen project in Newfoundland & Labrador, Canada, from German developer ABO Energy.

The project was granted exclusive right to pursue development on nominated Crown land by the Ministry of Industry, Energy and Technology in August 2023. As part of this application, the project signed an MoU with Miawpukek First Nation to ensure support from local communities.

In its public information session in March last year, ABO Energy announced plans to complete the project in three phases: hydrogen for the domestic market (2026-2028), ammonia production for exports (2028-2030) and expansion of ammonia production (2032-2034).

Toqlukuti’k is the second project in the partnership between CIP and ABO Energy. The two are also partners in Buffalo Plains, Canada’s largest onshore wind farm (450 MW).

We are delighted to partner with ABO Energy once again to support and contribute to Canada’s journey towards a carbon-neutral future. With the wind speeds present in Atlantic Canada, we see that Toqlukuti’k has the potential to produce green hydrogen and ammonia at globally competitive prices.

Karlis Povisils, Partner at CIP in ABO Energy’s official press release, 17 December 2024