Summary of Collaboration or Co-Development Project
Project Number
608033
Sponsor
CELSIA COLOMBIA S A E S P,CELSIA SA ESP
Date SCCP Disclosed
Jun 17, 2024
Country
Colombia
Region
Latin America and the Caribbean
Last Updated Date
Jun 18, 2024
Industry
Infrastructure
Sector
Agriculture and Forestry
Department
Regional Industry INF LAC & EUR
Project Description
This IFC Upstream project entails US$990k of cost-sharing funding support for Celsia Colombia S.A. to develop feasibility technical studies for green hydrogen ammonia and urea production facility in Colombia's Valle del Cauca region. The Project will generate 140 TPD (51,100 TPY) of green urea to be sold directly to plantations in the region adjacent to the plant. IFC Upstream support will be of great value for Celsia Colombia S.A. in de-risking the Project's development on a new business model and market, thus maximizing chances of reaching financial closure. Moreover, conducting jointly these feasibility studies before the EPC tendering would allow Celsia Colombia S.A. to control better the Project's capital costs, which relate to the off-taker affordability, competitiveness, and feasibility.
E & S Information
During this collaboration project, IFC will support Celsia Colombia S.A. by sharing international ESG best practices, such that the project is designed, constructed, and operated in compliance with applicable E&S laws and IFC Performance Standards. An initial E&S scoping study will be undertaken with the aim to provide valuable insights into the project’s overall footprint and identify potential E&S red flags. The outcome of the scoping study will inform other types of E&S assessments to be further undertaken to help prioritize key gaps that should be addressed early in the project cycle. It will also inform a secondary suite of E&S studies and identification of activities to facilitate project alignment with IFC PS. These includes, but not limited to, a comprehensive site assessment, analysis identifying impacts related to water efficiency (electrolysis and synthesis processes), reliability and process safety, toxicity, fire and explosion hazards related to the ammonia, hazardous materials and waste, air emissions, increased traffic, noise, potential conflicts over land use (sustainable crops) and biodiversity impacts (substantial land area required for renewable energy installations and infrastructure), and labor and working conditions (inc. forced and child labor); and reprisals risks, community health, safety and security practices, supply chain (e.g. solar panels) and impacts on indigenous people.
