Known as the fuel of the future, green hydrogen is set to expand production over the next decade substantially. Brazil is one of the countries aiming to become a significant global player in the industry and within Brazil, Ceará has everything in place to lead the green hydrogen market.
Pecem Port focal point of green hydrogen market
Brazil has positioned itself as one of the largest potential producers of the fuel of the future. Projects are in the pipeline in several locations, including Suape in Pernambuco, Açu in Rio de Janeiro and Rio Grande do Norte. However, Ceará dominates the sector with no less than 12 projects currently on the table.
Pecem Port to the north of Fortaleza is the chosen hot spot for green hydrogen production based around the Green Hydrogen HUB project, an initiative launched in February. Pecem Industrial Port Complex, the Ceará government and the technical department at Fortaleza University are all behind the HUB.
12 memoranda of understanding
Since February, the HUB’s instigators have attracted considerable interest from the green hydrogen sector worldwide and as a result, Pecem Port has 12 memoranda of understanding. These signify real commitments from companies to invest in green hydrogen production in Ceará.
They include the largest green hydrogen plant in the world. Enegix Energy from Australia will put their signature to the factory and invest US$5.4 billion in solar wind energy. The company expects to produce over 600,000 tonnes of green hydrogen a year once the plant is up and running.
Qair Brasil is also a major investor at Pecem Port with funds to the tune of US$6.95 billion. They plan to produce 296,000 tonnes a year. Another Australian company, Fortescue Future, has committed to investment of US$6 billion from 2025.
Ceará well-positioned in world green hydrogen
According to the International Energy Agency, Brazil could be well placed within the global green hydrogen industry by 2030 when it would be one of the major players. Its main competitors are Chile, China and Australia, although production in these countries is, like Brazil, still limited.
Within Brazil, Ceará expects to be the primary source of green hydrogen production by making the most of multi-billion investment and Pecem Port’s strategic location. Ceará also has the ideal climate for green hydrogen, which relies on solar and wind power for the electrolysis needed to desalinate water to separate oxygen and hydrogen.
The sector will boost the local economy and provide thousands of jobs, many of which will require qualified professionals. Pecem Port is already a centre of industrial excellence and a principal source of employment and wealth within Ceará.
Fuel of the future
Ceará is betting high on green hydrogen production and anticipating its potential. The fuel offers one of the ways to greenhouse gas neutrality and is expected to make up 18% of global demand by 2050.
(Source: China Dialogue Trust)