Energy company AES Corporation has set a target to achieve portfolio-wide net zero carbon emissions from electricity sales by 2040.

It has also pledged to reduce its generation from coal-fired power stations to below 10% by 2025 and boost the growth of renewables by 40% to between 3GW to 4GW of long term power purchase agreements (PPAs) per year.

In addition, AES Gener will conduct a feasibility study in collaboration with an international hydrogen producer for the first large green hydrogen-based ammonia project in Chile.

This project has the potential to produce more than 800MW of new renewable energy supply.

Andrés Gluski, AES President and Chief Executive Officer said: “The energy sector is evolving as a result of decarbonisation, electrification and digitalisation and AES is uniquely positioned to take advantage of this shift.

“Over the next five years, we will further transform our portfolio by materially accelerating our growth in renewables and at our US utilities. As a result, by 2025 we expect that more than 50% of our earnings will come from the US and more than 65% will come from renewables and our US utilities. Furthermore, today we are accelerating our target to reduce our generation from coal to below 10% by year-end 2025, by five years on a proforma basis and initiating a target to achieve portfolio-wide net zero carbon emissions from electricity sales by 2040.”