In a recent move, H2Brazil would be investing over €1.3 billion in two green hydrogen projects in Brazil – hence aiming to transform the nation into a global leader when it comes to sustainable hydrogen along with ammonia production. Pedro Cocotino, the CEO of H2Brazil, has confirmed the investment plans with Uberaba, Minas Gerais, and Acu Port in Rio de Janeiro as the two major sites in terms of development.
The centerpiece of all this happens to be a huge industrial plant within Uberaba’s export processing zone—ZPE, which is designed to give an output of almost 125,000 tons of hydrogen every year for a corresponding yield of 700,000 tons of green ammonia. Powered through an 820 MW electrolyzer, the project is all set to draw from the abundant solar as well as wind resources of the region, along with its agribusiness infrastructure as well as rail connectivity. According to Cacorino, due to the exceptional solar as well as wind resources along with an internationally recognized electricity grid, which is near to 100% green, the green hydrogen projects in Brazil can produce green hydrogen along with its derivatives at prices that are globally competitive.
Another similar initiative is going to take shape at Acu port. This will involve a 15 to 20 MW pilot plant having a €40 to €50 million budget. The objective is to start the operations at both the sites by 2027. It is well to be noted that the preliminary environmental licenses have already been secured for both. A cooperation agreement along with Minas Gerais utility Cemig is also anticipated to come out soon by making sure of a balanced supply of 100% renewable electricity to the Uberaba plant.
As per Cacorino, the electricity landscape in Brazil happens to give it a very decisive edge. It is well to be noted that Brazil has an electricity matrix, which is almost green, and it does not suffer from any war, such as the one in Ukraine, and thereby it makes it possible to sign the PPAs at prices that are much lower as compared to Europe.
It is worth noting that at €2.50 per kg, the green hydrogen cost in Brazil is comparable to grey hydrogen domestically and even half the cost in Europe, and that too with subsidies. Apparently, the plant in Uberaba is going to occupy 70 hectares and also generate almost 1000 direct jobs. Production is going to serve many downstream sectors, which include methanol, fertilizers, and even clean energy exports. According to the COO of H2Brazil, Nathalia Ervedosa, these partnerships enable them to have access to the infrastructure as well as the regulatory environment, which is required so as to offer green hydrogen prices that are very competitive, thereby promoting real decarbonization across the sector.
It is well to be noted that the industrial complex contract of Uberaba was inked in Rotterdam at the World Hydrogen Summit, therefore reflecting a rising international recognition when it comes to the potential of Brazil within the global hydrogen economy.
Significantly, H2Brazil, which is a Portuguese Brazilian firm formed by specialists from finance, engineering, and institutional development, regards these projects as the base for national as well as international impacts that are long-term.