H2Brazil intends to invest over 1.3bn euros (US$1.53bn) in two green hydrogen projects in the South American country, CEO Pedro Caçorino told BNamericas.
The main undertaking involves the construction of a plant in the export processing zone (ZPE) of Uberaba, Minas Gerais state.
A ZPE is a delimited geographical area, with differentiated customs, tax and administrative treatment, intended for the installation of companies focused on the production and export of goods and services.
Capable of producing up to 125,000t/y of low carbon hydrogen for output of 700,000t/y of green ammonia, the Uberaba project will require an 820MW electrolyzer and capex of 1.3bn euros.
The other initiative involves a small green hydrogen plant, with 15-20MW, budgeted at 40-50mn euros, in Açu port, Rio de Janeiro state.
Both projects already have preliminary environmental licenses and operations are planned to begin in 2027.
The idea is to meet local and international demand. Uberaba is a major agribusiness hub, with access to renewable energy and infrastructure, including railroads, while Açu is working to become a green hydrogen hub.
Caçorino said it is possible to produce green hydrogen in Brazil for 2.50 euros/kg, similar to the price of gray hydrogen (powered by fossil fuels) in the country and about half the price of green hydrogen in Europe (5 euros/kg, after considering subsidies).
“Brazil has an electricity matrix that is mostly green, it doesn’t suffer from wars like the one in Ukraine and it makes it possible to sign PPAs [power purchase agreements] at much lower prices than in Europe,” he said.
H2Brazil is the result of specialists in engineering, finance and institutional relations joining forces to position Brazil as a global benchmark in green hydrogen and ammonia, he added.
