Project Overview

The H2 Magallanes Project, the largest green hydrogen initiative in South America, aims to produce large-scale Green Ammonia (NH₃) using up to 10 GW of wind generation and 8 GW of electrolysis capacity, supported by a desalination plant and ammonia synthesis facility.

The project is designed as a fully islanded electrical system, operating independently from the national grid. It therefore requires a robust, self-sustained architecture capable of maintaining frequency and voltage stability under extremely high renewable penetration and low-inertia conditions.

The project has been divided into two phases.

Phase I – Electrical Architecture Definition & Screening 

Objectives

• Define the integrated electrical power system control and operational philosophy
• Establish grid characteristics and plant regulation principles
• Screen electrical architecture and technological options
• Define internal grid code requirements
• Provide preliminary grid sizing for Class IV cost estimation

Concept Screening & Selection
Main Objectives

• Assess the impact of wind variability on system operation and balancing
• Develop and compare several electrical architectures
• Down-select to one technically robust concept
• Support BESS sizing and selection between PEM and Alkaline electrolysis technologies

Key Activities

• Assessment of wind variability using project time series
• Evaluation of flexibility trade-offs (BESS vs PEM vs Alkaline)
• Screening of alternative electrical architectures
• Qualitative assessment of wind turbine technology and grid-forming capabilities
• Static and dynamic system modelling
• Preliminary sizing of mitigation measures
• Update of Single Line Diagrams (SLD) and CAPEX/OPEX estimates

Phase II – Conceptual Study & Stability Validation (Started December 2023)

Following the Preliminary Study, the project entered the next development stage with the launch of a Conceptual Study, aimed at validating and refining the selected architecture through advanced static and dynamic analyses and ensuring adequate robustness of the islanded grid.

Scope of Services Provided
1. Static Validation of Electrical Architecture

• Static load flow and contingency (N-1) analysis
• Voltage profile validation under extreme wind scenarios
• Identification of weak nodes and reinforcement needs
• Static validation of overall architecture robustness

2. Wind Park Model Testing & Benchmarking

• Data collection from three wind turbine vendors
• Testing, validation, and benchmarking of vendor dynamic models
• Ranking of wind park technologies
• Assessment of grid-forming versus grid-following capabilities

3. Development of Generic Electrolyser Dynamic Model

• Development of in-house generic electrolyser model for system-level simulations
• Representation of active power control, ramping capability, and reactive support
• Integration into power system simulation platform
• Comparative assessment of PEM vs Alkaline flexibility characteristics

4. Dynamic Stability Studies & Mitigation Sizing

• Full grid model implementation in simulation software
• Integration and testing of dynamic models
• Transient and small-signal stability analyses
• Validation of fault-ride-through capability
• Optimal sizing of dynamic compensators (e.g., STATCOM, synchronous condenser, BESS where applicable)
• Refinement of mitigation strategy to guarantee minimum robustness levels

5. Design of Frequency & Voltage Control Strategy

• Design of grid frequency control logic for islanded operation
• Definition of voltage regulation strategy
• Coordination between wind generation, electrolysis load, and compensators
• Consolidation of internal grid code performance requirements

Outcome

The study successfully validated and refined the electrical architecture of a 10 GW fully islanded renewable industrial power system, establishing a robust frequency and voltage control philosophy suitable for a zero-synchronous-generation environment. Through advanced static and dynamic analyses, the optimal sizing of dynamic compensators was determined to ensure system resilience under extreme operating and disturbance conditions. The work significantly enhanced the technical maturity of the project, de-risked key design decisions, and provided an integrated technical-economic validation framework supporting Class IV cost estimation and progression to detailed engineering.