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Companies Must Sign a Memorandum of Understanding with the Government of the State of Ceará to Be Part of the Green Hydrogen Hub
Multinationals Engie and EDP plan to invest in the production of green hydrogen (H2V) at the Pecém Industrial and Port Complex, located in Ceará. In the coming days, the companies will sign a memorandum of understanding with the state government to be part of the CIPP hydrogen hub, which has already had four memorandums signed so far: Enegix, White Martins, Qair, and Fortescue. Also, see: Construction of a New Green Hydrogen Plant in Ceará Could Receive Investments of Nearly R$ 4 Billion
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Some Details About the New Plant to Be Built in Ceará
The green hydrogen project in Ceará by Engie and EDP is to be managed by Ocean Winds, a 50-50% joint venture of the two companies, based in Spain. Currently, Ocean Winds is licensing five offshore wind farms in Brazil, with 15 GW of capacity — most of them large-scale.
The combination of the ports with the new offshore wind farms attracts investors interested in green hydrogen. The expectation is that the new renewable energy source will be able to meet a significant part of the enormous electricity demand required in the electrolysis for H2V synthesis. EDP and Engie already operate in Ceará. EDP with the coal-fired power plant UTE Pecém – I, located in the CIPP, and Engie with the Trairi Wind Farm.
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Use of Renewable Sources
In EDP’s case, green hydrogen is considered essential to enable the continuity of the company’s operations in Ceará. As part of its decarbonization program, in January the company shut down its coal-fired power plant in Sines, Portugal.
EDP was part of a consortium alongside Galp, REN, Martifer, Vestas, and Engie, which aimed to create an H2V hub in the region where the plant is located and convert it to using green hydrogen as fuel, even by the end of 2022. However, in May of this year, EDP and Galp abandoned the project.
Also Check: Ceará Will Receive Investments of R$ 90 Billion and Could Generate Over 5,000 Jobs, with Green Hydrogen Projects
The state government has already closed a memorandum of understanding with companies to make investments in green hydrogen production plants, which could result in investments of R$ 91.25 billion. The forecast is that these plants alone will generate 5,000 jobs in the initial phases, not counting secondary or parallel operations.
The company Fortescue Future Industries, a subsidiary of Fortescue Metals Group, a leading global player in the iron ore industry, will invest US$ 6 billion to build a green hydrogen plant in the state of Ceará.
Qair Brasil announced at the end of June that it will build a new green hydrogen plant in the state of Ceará. The company, part of the French group Qair, states that the construction of the project is expected to be carried out in four phases, between 2023 and 2030.
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