Investment company KKR and integrated renewable group IGNIS have agreed to launch a power-to-x (P2X) platform IGNIS P2X to develop primarily green hydrogen and ammonia projects for industrial applications in hard-to-abate sectors.
As part of the agreement, KKR will provide up to €400 million to develop and build future projects, IGNIS revealed, adding that both parties 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 and fertilizer, among other sectors, as well as traditional renewables, largely wind and solar, associated with the hydrogen and ammonia projects.
According to IGNIS, projects will be located near large off-takers, providing technology for the decarbonization of hard-to-abate sectors.
IGNIS said that the platform includes a pipeline of around 20 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.
Antonio Sieira, IGNIS’ CEO, noted that the company will continue to focus on its integration across the renewables value chain and in projects for energy-intensive industries.
Ryan Miller, Managing Director of KKR’s European Infrastructure team, commented: “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.”