Spotlight: Brazil’s green hydrogen projects

Brazil’s Ceará state has signed a memorandum of understanding with H2 Green Power for the installation of a green hydrogen production plant at Pecém port, the local government said on Thursday. 

The deal is one among over two dozen similar agreements already signed in the country, which involve multi-billion dollar investments. 

The new MOU includes the development of a green hydrogen production chain project, including a possible participation in an ammonia and utilities storage pool to be developed and implemented at the port and industrial complex. 

On the same day, Ceará signed an MOU with Kroma, which intends to install several PV solar parks in the state's interior. The Arapuá and Frei Damião complexes will require 2.2bn reais (US$430mn), totaling installed capacity of 690MW.

Besides H2 Green Power, the state has inked MoUs with:

– Fortescue Future Industries, involving a US$6bn capex;

– Qair Brasil, demanding a US$6.9bn investment including two offshore wind parks that will fuel the green hydrogen plant;

– Enegix Energy (US$5.4bn); 

– Cactus Energia Verde (5bn euros/US$5.52bn);

– Transhydrogen Alliance consortium, formed by Proton Ventures, Trammo, Global Energy Storage and Varo (2bn reais);

– Eren do Brasil (undisclosed investment);

– Linde/ White Martins (undisclosed investment);

– AES Brasil (undisclosed investment); 

– Stolthaven Terminals (focused on green hydrogen storage and handling services); 

– Engie (undisclosed investment);

– Eneva (undisclosed investment);

– Diferencial (undisclosed investment);

– Hytron (undisclosed investment);

– H2Helium (undisclosed investment); and

– Neoenergia, for the implementation of an urban mobility project using green hydrogen-powered public transportation vehicles (undisclosed investment).

The list does not include a pilot announced by EDP Brasil in September 2021 involving a 41.9mn-real green hydrogen plant scheduled to come online in December. In this case, no MOU was signed. 

OTHER CASES

Additional industrial and port complexes in Brazil are also betting on green hydrogen. 

Pernambuco’s Suape port has either signed MOUs or is in negotiations with Neoenergia and Qair Brasil, while, in Rio de Janeiro, Fortescue Future Industries is in talks with the Porto do Açu. 

In Rio Grande do Sul, White Martins signed an MoU with the state to enable green hydrogen production. 

Meanwhile, Nexway (Comerc) and Casa dos Ventos are in advanced conversations with northeastern states to start green hydrogen undertakings.