Brazil’s Proquigel keeps green hydrogen project in its sights

Brazil’s Proquigel Química has asked waterways regulator Antaq for authorization to keep cargoes and equipment for the implementation of a green hydrogen and ammonia plant stored at its urea maritime terminal (TMU) in the port of Aratu, Bahia state, for another 180 days.

The request from Unigel's subsidiary is due to the delay in the project, which will be installed at the Camaçari petrochemical complex, due to the economic and financial difficulties experienced by the company. 

Unigel filed for judicial reorganization, or bankruptcy protection, in February to restructure 3.9bn reais (US$690mn) in liabilities with the issuance of new debt and equity securities in exchange for the cancellation of current debt.

According to the group, the crisis stems from the high volatility of the price of natural gas, the main cost in the production of nitrogen fertilizers, linked to the beginning of a down cycle in the global petrochemical market that originated during the COVID-19 pandemic. 

“In this sense, with a view to enabling the continuation of the project conceived by Proquigel, despite its current economic and financial situation, it is essential to grant a new authorization,” the company said in a letter sent to the regulator. 

Proquigel requested that the new authorization take effect on December 1 as the current authorization expires November 30.

The project originally announced by Unigel includes an investment of US$1.5bn in a plant with the capacity to produce 100,000t/y of green hydrogen to obtain green ammonia.  

The company intends to offer the products to customers who see green hydrogen and ammonia as a solution to their decarbonization challenges. 

Green ammonia could be used as fuel, especially by bulk carriers and container ships. 

In addition, green ammonia could strengthen Unigel's portfolio of sustainable products, since it is a raw material for fertilizers and acrylics.