Unigel, a company that operates in the chemical sector, announced a billionaire investment for the construction of a new green hydrogen plant in Bahia, which promises to generate several new jobs.

This Wednesday (18), the Brazilian chemical industry Unigel announced an investment of up to 1,9 billion dollars in its complex in Bahia for the green hydrogen production, this being the first installation in Brazil for the product on an industrial scale. Located in Camaçari, in the state of Bahia, the unit, which promises to generate hundreds of new jobs, should have the first, of three phases, opened by the end of this year.

Unigel green hydrogen plant in Bahia will produce 10 thousand tons per year

After the first phase, the unit will expand its production capacity, until it arrives in 2027 producing around 100 thousand tons of green hydrogen, or 600 thousand of green ammonia, one of its derivatives.

The first phase of the Unigel project was announced in the middle of last year, with an investment of US$120 million and a production capacity of 10 tons per year of green hydrogen and 60 tons per year of green ammonia.

Hydrogen can be used as an input in industries such as steel and oil refining and can also be used as fuel for vehicles. Ammonia can also be used as fuel for bulk carriers and in the production of acrylics and fertilizers.

However, unlike common production, where the raw material is steam from natural gas, green hydrogen is obtained by converting wind or solar energy, using electrolysers that will be made available by Thyssenkrupp Nucera, in Europe. Part of the energy that will be used in production will come from wind energy generated by Casa dos Ventos, a company in which Unigel signed a billionaire contract in 2021.

Unigel's new factory in Bahia must meet foreign demand

Roberto Noronha Santos, president of Unigel, says that, in the beginning, a large part of the production of the new factory, which aims to generate several new jobs, should be sent to customers abroad, in view of the growing demand from regions such as Europe for products that completely eliminate or reduce CO2 emissions, as is the case of green hydrogen.

Santos points out that Unigel already operates one of the only two ammonia terminals in the country, in the port of Aratu, in Bahia. In addition, it has access to infrastructure and energy sources at the Camaçari Complex. According to Luiz Felipe Fustaino, executive director of Unigel, the company is evaluating options to raise funds for the second and third phases of the project, which promises to generate several jobs. This may include joint ventures and an initial public offering (IPO).

Unigel even tried to debut on the São Paulo Stock Exchange in August 2021, but withdrew due to adverse market conditions. However, it was registered as a publicly-held company and, after regulatory changes installed by the Brazilian Securities Commission (CVM) recently, it will be able to trade shares using a more agile process than in the past. However, Fustaino points out that this is still an alternative under study.

Projects around the world focus on the Green Hydrogen market

In addition to the Unigel factory in Bahia, which promises to generate several jobs, there are other pilot projects for the production of green hydrogen in Brazil, in Rio de Janeiro and another in Ceará, both on an experimental basis. The emergence of the fight against global warming has a race for decarbonization projects.

Earlier this month, India approved a $2,1 billion incentive plan to generate green hydrogen, aiming to produce 5 million tonnes of clean fuel by 2030. Egypt granted license for a green ammonia project with a capacity of 1 million tons per year, with an investment of US$ 5,5 billion.