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Siemens Energy Closed an Agreement for the Production of Green Hydrogen in Bahia. The Project Will Begin Its First Phase in 2025 and Will Have a Production Capacity of 20 GW.
Siemens Energy and Quinto Energy signed a memorandum of understanding (MOU) this week for the development of a large-scale green hydrogen project in Bahia. The feasibility study estimates the production of 1 million tons of green hydrogen (H2V) annually. This is the largest project ever announced in the world. The companies are working together to ensure the first phase happens in 2025.
Projects Can Generate 20 GW of Installed Capacity
The green hydrogen production project plans to install an electrolyzer plant at the Camaçari Petrochemical Pole in Bahia, the largest integrated industrial complex in the Southern Hemisphere. The project by Siemens Energy and Quinto Energy will also include a Technology Operations Center, also in Camaçari.
The business model plans to export the produced fuel to Europe. To do this, the hydrogen will be converted into liquid ammonia. In this regard, a storage unit is planned at the Port of Aratu in Candeias, also in Bahia, from where 5.3 million tons of green ammonia per year are expected to be exported. There is already a formal partnership with the port’s administrator, the Companhia das Docas do Estado da Bahia (Codeba), to conduct the feasibility study.
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The entire project is being developed by Quinto Energy, utilizing all the technology and software expertise from Siemens Energy. E-fuels will be generated through electricity produced by five hybrid complexes, such as wind and solar parks, by Quinto Energy in Northern and Southwestern Bahia.
Together, these megaprojects have 20 GW of installed capacity, capable of generating 65 TWh of electricity per year, equivalent to 11.7% of the electricity consumed annually across Germany.
Quinto Energy and Siemens Energy Comment on the New Partnership
According to the CEO of Quinto Energy, Rafael Cavalcanti, the green hydrogen project has all the essential elements to meet the challenge of energy transition. According to the executive, first because the company has a large-scale production capacity. It also has security in the export process, and finally, it guarantees the low cost of fuel generation.
The most advanced negotiations for H2V export are with Germany, a country that is positioning itself at the forefront when it comes to the hydrogen economy. The fuel, generated from clean energy sources, is the key to the energy transition, which will help save the world from global warming.
The director of new business at Siemens Energy, Andreas Eisfelder, states that this partnership between Quinto and Siemens is strategic for the energy business relations between Brazil and Germany. The project will help strengthen Brazil as a world powerhouse in green hydrogen production and will boost Germany in its pursuit of energy transition. The executive emphasizes that Siemens Energy has a mature project, with a chance to execute it in the very near future.
Brazil Will Host the World’s Largest Green Hydrogen Factory
Unigel, one of the largest chemical industries in Latin America and a leader in sectors such as ammonia and fertilizers, announced an investment of US$ 120 million, equivalent to R$ 660 million, in the construction of Brazil’s first green hydrogen factory.
The aim is for the green hydrogen facility in the country to be the largest in the world. Thus, the company will invest in the production of ammonia and green hydrogen, which gain prominence in the global race towards decarbonization.
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