Federal government interest in green hydrogen hub in Ceará

Federal government interest in green hydrogen hub in Ceará

Northeast Brazil recently upped its participation in sustainable energy with the presentation of the project to implement a green hydrogen hub in Ceará. The development comes with international investment from Australia, Germany and the US. The state plans to use Pecem Port as the main base for production and distribution. 

Presentation of green hydrogen hub in Ceará

Earlier this month, the Ceará government formally presented the project for developing a green hydrogen hub in Ceará to the national Ministry for Mines and Energy (MME). The Brazilian government has reportedly shown strong interest in the project and aims to introduce the source as one of the primary energy sources in the country. 

With regards to the project, the MME has already set up strategic alliances with the German and US governments. Cooperation with Denmark is underway as are negotiations with Chile and Argentina. 

Australian investment already in place 

The Ceará government laid the foundations for the project in February and has since secured Australian interest. The state authorities signed a memorandum of agreement with Enegixm involving investment of US$5.4 billion. Further negotiations with other third-party countries are underway. 

Strategic location 

The new green energy hub in Ceará will take advantage of infrastructure in the state. Pecem Port, one of the largest in Northeast Brazil, already has strong ties with the Port of Rotterdam in the Netherlands with a number of agreements. 

The plan is to install a pilot electrolysis plant at Pecem Port. It would use wind and solar energy to separate hydrogen and oxygen in water and create green hydrogen as a consumable. 

“I do not doubt that this hub will place Ceará at the centre of the world stage in energy transition,” said Maia Junior, Ceará Secretary for Economic Development and Employment (SEDET in Portuguese). 

New sustainable energy source 

The green hydrogen hub in Ceará will satisfy new demands for sustainable energy as countries worldwide meet the requirements for the Paris Agreement. The fuel produced from renewable energy sources, is seen as a key element in a carbon-neutral planet over the next few years. 

Interest in clean energies such as green hydrogen has, according to analysts, skyrocketed in the last year. They form a fundamental part of carbon-neutral initiatives around the world, including The European Green Deal.  

More green energy in Ceará 

The state, already a leading figure in renewables in Brazil, currently contributes a significant percentage of wind and solar energy to the country’s electrical grid. Investment in green energy sources forms a significant part of investment in the state, which aims to lead Latin America in the bid for a carbon-neutral footprint. 

The latest plans will attract further talent in renewable energy technology to the state. This sector already makes a significant contribution to employment in Ceará, which in turn increases purchasing power for high-end consumer items including property.