SANTIAGO, Chile, Jan. 28 (UPI) -- AES Andes, the Chilean power generation unit of the U.S.-based AES Corp., has decided to abandon plans to develop the controversial INNA project, a large-scale green hydrogen and green ammonia initiative in Chile's northern desert.

The project, planned for the Antofagasta region, would have cost an estimated $10 billion to build an industrial complex capable of producing about 100,000 metric tons of green hydrogen and 650,000 metric tons of green ammonia per year. It also included constructing solar and wind parks and battery storage systems.

From its early stages, the initiative faced controversy and strong political and scientific opposition after environmental permitting began in 2024.

Chile's astronomical scientific community broadly opposed the project because it was to be located about 6 miles from the Paranal Observatory, operated by the European Southern Observatory and considered one of the world's most important astronomical centers. Scientists warned the facility would generate light pollution that could interfere with observations of dark skies.

"While INNA is a project that is fully compatible with other activities carried out in the area, AES Andes has decided to prioritize its efforts on the development and construction of its renewable energy and storage project portfolio, in line with the guidelines of its parent company in the United States," the company said in a statement.