75MW power purchase agreement signed in Paraguay
NeoGreen Hydrogen Corp. is pleased to announce the recent signing of a long term 75MW baseload Power Purchase Agreement (“PPA”) with the ANDE, the national electricity company of Paraguay.
Since signing the Cooperation Agreement with the ANDE in November 2021, NeoGreen has worked with its consortium partners and with Mott MacDonald, the global engineering, management, and development consultancy, to finalize a number of studies.
NeoGreen now looks forward to moving the Tres Fronteras project towards Front End Engineering and Design (“FEED”) stages NeoGreen has been cooperating with Atria Logistica, the largest river and port logistics company in the Paraguay-Paraná waterway, and NeoGreen plans to build its industrial plant in close proximity to Atria’s Tres Fronteras port, an ideal location to supply much of Paraguay’s main soya producing areas.
Additionally, the newly constructed bridge to Brazil is adjacent to their facility, which will further facilitate access to large Brazilian markets. The access to this port facility also opens up a number of regional export opportunities for NeoGreen in the future and the port is the intended location of a new fertilizer mixing plant.
Following on from the initial Consortium Agreement signed in 2021 with Tocsa SA, a leading local engineering and construction company, to assist with the studies, NeoGreen has since evolved its partnership with Tocsa to cover the development and management of the project. Technical support for the project will be provided by Siemens Energy, in accordance with an agreement signed in September 2022.
NeoGreen’s Tres Fronteras project is one of a pipeline of projects the Company is targeting around the world. In November 2022, NeoGreen announced details regarding its project in the Port of Sines in Portugal, utilising renewable power to produce green hydrogen and e-methanol for export to Western European markets.
Miles Lewis, President of NeoGreen Paraguay, commented: “I would like to thank the team at the ANDE for all their assistance during the initial planning phase of this project. We now consider that we have a thorough understanding of the challenges and opportunities that Paraguay provides as they seek to fulfil their climate goals and, having assembled a consortium of partners, the signing of this PPA will allow us to accelerate development with a view to this initial project entering into production in early 2026. Simultaneously, it is our group’s intention to progress further technical studies aimed at substantially increasing capacity, as detailed in our initial Cooperation Agreement. We look forward to working with all our partners in delivering this exciting project.”
Santiago Bautista Herman, Business Development Manager for South Latam at Siemens Energy commented: “The challenges posed around the energy transition can only be successfully faced through alliances like this, which allow us to collaboratively develop innovative solutions to pave the way towards a low carbon energy ecosystem.”
Ing. Felix Sosa, President of the ANDE commented: ‘’This agreement forms another important step in Paraguay’s green hydrogen roadmap and we look forward to working with NeoGreen and their partners to maximise the efficient use of our renewable energy resources within this emerging industry”.