AES Shifts Strategy with Major Green Hydrogen Project Cancellation

AES US00130H1059

The AES Corporation is implementing a significant strategic realignment of its Latin American operations. In a move that signals a sharpened focus on near-term profitability, its subsidiary AES Andes has terminated a massive $10 billion green hydrogen and ammonia production initiative in Chile. This decision underscores a corporate pivot toward projects with stronger margins and faster implementation timelines.

Market analysts view the cancellation of the "INNA" megaproject in the Antofagasta region as a clear effort to concentrate capital. The capital previously earmarked for the complex hydrogen venture is now being redirected toward more established and immediately scalable technologies: solar power and battery energy storage systems (BESS).

This represents a strategic prioritization within the company's broader "Greentegra" framework. The green hydrogen project, originally submitted for environmental review in early 2025, no longer aligns with the group's revised cost-benefit analysis. The new emphasis is on accelerating the build-out of renewable generation and storage capacity.

Concrete Growth Targets for Chile

AES Andes has a substantial track record, having connected over 2,100 megawatts of renewable capacity to the grid since 2018. The company has set a definitive goal: to increase its total capacity in Chile to 4.5 gigawatts by 2027. This near-doubling of capacity will be driven by a pipeline of specific projects.

Key developments include:
* The Andes Solar III solar plant and the Bolero BESS battery storage facility are scheduled to commence operations in the first half of 2026.
* Additional projects, such as Arenales and Atacama BESS, are already under construction.

Upcoming Financial Events for Shareholders

Alongside this operational shift, investors are anticipating two imminent financial events. The stock will trade ex-dividend tomorrow. Shareholders on record at that time will receive a distribution of $0.17595 per share on February 13.

Furthermore, the AES Corporation will release its detailed fourth-quarter and full-year 2025 financial results on February 27, 2026. The accompanying management conference call is expected to provide a detailed explanation of the long-term financial impact from halting the INNA project, as well as the next steps in the company's Latin American growth strategy.