TeraWatts By Z Holding Energy plans to develop 1,400 MW of renewable capacity in Colombia , distributed between two complexes that will integrate photovoltaic and wind power generation with the production of green hydrogen, sustainable aviation fuel (SAF), methanol and ammonia.
The portfolio will require an estimated investment of $2 billion and will target large industrial consumers, shipping companies, and airlines. The company is preparing power purchase agreements for these projects.
“ We are going to sign exactly three PPAs, we expect to sign the first one in November ,” anticipated Carlos Mario Zuluaga Valencia, president and Group Chief Executive Officer (GCEO) of TeraWatts By Z Holding Energy , in dialogue with Energía Estratégica.
The company plans its facilities under a closed-loop ecosystem model for self-generation and self-consumption . The goal is to produce electricity and renewable fuels close to the buyers, reducing dependence on the national grid and available connection points.
The first project will be located in Barrancabermeja , across from the Ecopetrol refinery. There, TeraWatts has approximately 400 hectares, within a planned area of nearly 600 hectares, to install 400 MW of photovoltaic energy .
The electricity will fuel the production of green hydrogen, SAF, and methanol . Proximity to Ecopetrol would allow for the supply of both electricity and hydrogen to one of the main industrial consumers in the area.
The complex will be deployed in stages, using 20 MW units adjusted to meet buyer demand. “ These projects are scalable ,” Zuluaga Valencia emphasized.
While the permitting process for the larger facilities continues, the company plans to begin with a pilot project of around 5 MW . The first stage will integrate photovoltaic generation, modular hydrogen production, and a small ammonia, SAF, and green methanol plant.
The proposal includes microgrids and substations for each large prosumer installed within the ecosystem. Solar self-generation will cover demand during the day, while a BESS storage system will support companies that require 24-hour supply.
TeraWatts is considering using sodium batteries. The configuration will depend on each user's consumption profile and the terms agreed upon in future contracts.
A 1,000 MW complex with access to the sea
The second development will be located on 595 hectares facing the port of Barranquilla , next to the Magdalena River and with access to the sea. There, the company plans to combine wind and solar power generation with facilities to produce hydrogen and synthetic fuels.
“It is a megaproject, the total electrical capacity will reach 1000 MW,” the group's president stated, describing the planned size of the complex.
The second phase will incorporate port infrastructure so that ships can carry out bunkering operations or load renewable fuels destined for export.
The site will be near the Pumarejo Bridge, on a corridor connecting Barranquilla and Santa Marta. This location will facilitate access to two of the main port hubs used for Colombian exports.
“ We are in talks with a shipping company, the most important one, I believe, in the world right now, regarding flex fuel for ships ,” he said.
The company representative also stated that they are in talks with a European airline and another from the UAE that could refuel with a blend of SAF fuel in Cartagena. The fuel would be transported via the Magdalena River to the ports of Barranquilla, Santa Marta, and Cartagena.
Zuluaga Valencia explained that the ships could refuel to continue their journeys or take on fuel periodically, depending on the production volumes agreed upon with each buyer. The closed-ecosystem model also seeks to address the electrical grid evacuation restrictions faced by some renewable energy developments in Colombia. The energy generated would be consumed primarily within each park, without relying entirely on grid capacity.
The executive maintains that several high-consumption companies have already requested bids to locate within these complexes. The proposal will combine competitive prices with firm energy for industrial processes.
The total planned investment for the two projects reaches $2 billion , linked to the infrastructure needed to support the power purchase agreements (PPAs) and develop the various plants.
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“ The total project in PPAs for energy sales is $2 billion ,” the group's president explains.
The plan includes progressive disbursements and investment phases with a horizon up to 2050. According to Zuluaga Valencia, the financial backing comes from sovereign wealth funds in the Middle East .
The company is working on structuring disbursements according to the technical, regulatory, and commercial progress of each phase. The addition of new customers will allow for adjustments to the generation and production capacity of green molecules.
However, the start of larger-scale construction remains contingent on environmental permits . The executive questions the delays in the permitting process and believes they hinder the entry of new private developers.
TeraWatts expects to redefine its timelines after the change of government announced for August 7 , with the expectation that the new authorities will facilitate the execution of the projects.
“ We hope that situation will change ,” Zuluaga Valencia stated, referring to the obstacles identified in the authorization processes.
What TeraWatts is demanding to accelerate green hydrogen
According to the group's president, the development of green hydrogen in Colombia requires clear institutional signals. " The first thing is political will ," he stated.
Among the priorities, he mentions streamlining environmental permits, creating specific tax incentives for hydrogen, and improving conditions to attract international capital.
“ They need to unblock the issue of environmental licenses ,” the executive demanded.
Zuluaga Valencia believes it is necessary to extend to hydrogen some of the benefits that already exist for photovoltaic energy. Among these, he points to equipment depreciation and the tax treatment associated with generation. He also warns that the income tax, close to 35% according to his statements , limits Colombia's competitiveness compared to other markets seeking to attract investment in renewable projects.
The strategy should be complemented by regulation for storage systems, so that self-generators can market their surplus energy to the grid.
In turn, the country will need to expand its transmission infrastructure, including new 500 kV networks, to accommodate larger volumes of renewable generation over the next few years.
A hydrogen train for Antioquia
In addition to the two industrial complexes, TeraWatts seeks to participate through a public-private partnership in the recovery of the Antioquia Railway .
The initiative, spearheaded by the Governor's office, envisions an initial corridor between Medellín and Cisneros. Part of the funding would come from revenue generated by a new unit at the Hidroituango hydroelectric plant.
“ It is also a hydrogen-powered train. That is our proposal to the national government ,” explained the GCEO.
The studies could take between 12 and 13 months. According to the timeline outlined during the interview, the analyses and approval of the project should be completed before the current administrations in Antioquia and Medellín leave office.
Looking further ahead, the company is also exploring with Japanese partners the potential development of compact mini-nuclear power plants using a new nuclear fission technology . Zuluaga Valencia estimates these initiatives will take between 15 and 20 years to complete, given the costs, technical requirements, and regulatory processes involved.
Currently, TeraWatts' priority is focused on photovoltaic and wind power generation, green hydrogen, SAF (soldering fuel oil), and methanol. These technologies allow for modular implementation and can directly supply industrial consumers, shipping companies, and airlines.
With 1,400 MW of renewables, $2 billion of planned investment, three PPAs in preparation and potential international buyers , the company seeks to move forward with one of the largest-scale integrated portfolios of hydrogen and sustainable fuels announced in Colombia.
Its implementation will depend on environmental permits, storage regulations, the tax treatment of hydrogen, and the openness that the new government generates for private investments.