RENEWABLES
Wind and hydrogen are but two sectors witnessing promising developments in Colombia, driven by industry innovation and greater investments in technology.
How does the company work to maintain its leadership position in the wind energy sector?
ARMANDO POLITI In early 2021, Bluefloat Energy entered the Colombian market as an early competitor in offshore wind. Our strategy has evolved, acknowledging the need to influence regulations for international alignment. Despite three years of project development, competing in the upcoming auction is challenging due to the government’s emphasis on financial capability. These are 500-MW projects with millions of dollars’ worth in development expenditure, and financially capable companies need a clear legal path and fiscally viable conditions to promote a favorable renewal energy industry in Colombia. As the first movers in project development, we have made strides, including pre-engineering in three projects and conducting mid-ocean studies.
What has been the company’s strategy to execute more projects in a scenario of resilience?
ALVARO TORRES Electryon Power Inc.’s primary strength lies in the origination stage of the business. With our extensive experience, we surpass other companies in effortlessly identifying and initiating projects. We possess in-depth knowledge of the country and the power system, enabling us to locate suitable project sites and secure land proactively. Unlike many who rely on guesswork, we strategically position ourselves in each region where we develop projects. For example, this year, we are proposing seven projects for the coming year, having completed feasibility studies. Our goal is to achieve a success rate of 40-50% for these proposals next year, leveraging our wealth of experience and knowledge.
How is the company leveraging its global knowledge and experience to capitalize on opportunities?
AP We initially had seven projects in development, including Vientos Alisios in Galerazamba, Goleta, and Bergantín in the Santa Marta Bay region, and Astrolabio and Barlovento in the Guajira region; however, we progressed to the pre-feasibility stage in only three of them. During July-August 2022, we rapidly advanced studies and environmental impact assessments for these projects, positioning ourselves as pioneers in offshore wind technology in Colombia. Unexpectedly, the government introduced a modification to the resolution, incorporating a transition article. Consequently, the projects were not directly awarded to us; instead, we had to enter an auction process, for which we were pre-qualified. We are leveraging our extensive experience from advanced markets to contribute to Colombia’s offshore wind auction.
What are your upcoming projects and portfolio projections for the next few years?
AT We are developing four large-scale green hydrogen projects in Colombia: a 700-MW project in La Guajira; a 250MW project in Barranquilla; a 250-MW in Cartagena; and a 50-MW for mobility in Bogotá. The Barranquilla and Cartagena projects are adaptable and easily scalable for two or three additional 250MW modules. Our most ambitious project aims to produce hydrogen for public transportation in cities such as Bogotá, specifically for Trans-Milenio. Partnering with national and international companies, we aim to introduce 400 hydrogen buses initially, addressing weight concerns posed by electric buses. While Bogotá already has 1,250 electric buses out of 10,000, our plan could revolutionize city bus mobility and contribute to environmental sustainability.
What role can sea-based energy play in the transition of the energy sector within Colombia?
AP Most of the market recognizes that the cleanest and renewable energy is found at sea. To transition from oil and gas in the near future and address environmental concerns, investing in sea-based energy sources is essential. Over the next 50-60 years, these offshore wind projects can replace contaminating energy sources. As oil reserves diminish and environmental regulations limit large reservoirs, the sea becomes a crucial source of energy. BlueFloat Energy aims to lead in these developments globally, recognizing the imperative of sustainable energy for the future.
What is the potential of hydrogen energy in Colombia?
AT Recognizing the need for innovation, I suggest converting the generated energy into hydrogen, further transforming it into ammonia for export. This unique approach bypasses the transmission line issue and presents a more feasible option for delivering energy from La Guajira to meet national demands or export to Europe. The goal is to convert La Guajira into a hydrogen hub ultimately. There is skepticism surrounding hydrogen, with people asking who will buy it; however, as awareness grows, hydrogen will become essential for decarbonizing society, and in 10-15 years, everyone will be a buyer. The private sector needs to be proactive in this transformative process.