In a landmark move for sustainable development and climate action, the World Bank Board of Directors has approved a new operation to support the green hydrogen strategy of the Companhia de Desenvolvimento do Complexo Industrial e Portuário do Pecém (CIPP) and the Government of Ceará. This initiative is set to transform the Pecém Industrial and Port Complex into a leading hub for clean hydrogen production, placing the Brazilian state of Ceará at the forefront of the global clean energy transition.
Pecém Complex: Strategic Hub for Green Hydrogen
Located in Northeastern Brazil, the CIPP is a major industrial and logistics center, uniquely positioned to drive the country’s energy transition. Supported by both state and federal governments, the Pecém Complex is emerging as a focal point for the development of Brazil’s hydrogen economy. The project will finance critical infrastructure to attract private investment in clean hydrogen and its derivatives, drawing on global best practices and lessons learned from World Bank-supported hydrogen initiatives in Chile and India.
The initiative aims to reduce carbon emissions, advance Brazil’s clean energy goals, and create enabling conditions for stakeholders across the energy sector—including private investors, local industry, and the wider community—by generating economic opportunities and climate benefits.
Economic and Social Impact: Jobs, Inclusion, and Climate Resilience
“This support from the World Bank represents a historic milestone for the Pecém Complex and for Ceará. We are making concrete progress in consolidating the green hydrogen hub, which positions Brazil as a leader in the global energy transition. This initiative strengthens our infrastructure, attracts investment, and creates real opportunities for the people of Ceará,” stated Max Quintino, president of the Pecém Complex.
“Ceará is embracing the future by investing in green hydrogen and building the policy foundations for a more sustainable, competitive, and inclusive economy,” said Jorge Coarasa Bustamante, World Bank Operations Manager for Brazil. “This program helps expand job opportunities and promotes clean growth, especially in regions historically left behind.”
The project is expected to have a transformative impact on Ceará, one of Brazil’s poorest states, by fostering job creation, social inclusion, and long-term climate resilience. By leveraging the region’s renewable energy potential and strategic infrastructure, Ceará is set to become a key player in decarbonizing sectors such as industry and transport.
Alignment with Brazil’s Climate and Development Goals
The World Bank’s support aligns with Brazil’s updated Nationally Determined Contribution (NDC), the National Hydrogen Program, and the New Brazil Industry Policy. It also supports Ceará’s “Plano Verde” and broader federal and state efforts to promote a clean energy transition that drives economic and social development. The project leverages Brazil’s vast renewable energy resources to support the creation of a clean hydrogen industry, essential for meeting national and international climate targets.
Financing Structure and Global Best Practices
The World Bank’s financial support is provided through an Investment Project Financing (IPF) instrument, designed to lay the foundation for transformative change. The total financing amounts to US$134 million, comprising:
- US$90 million IBRD loan
- US$9 million grant from the IBRD Surplus-Funded Livable Planet Fund
- US$33.5 million Climate Investment Funds (CIF) loan under the Renewable Energy Integration (REI) Program
- US$1.5 million CIF REI grant
The project incorporates lessons from similar World Bank-supported hydrogen initiatives in Chile and India, ensuring the adoption of global best practices in clean hydrogen development.
Institutional Context and Global Relevance
According to the World Bank, green hydrogen is increasingly recognized as a key vector for decarbonizing hard-to-abate sectors and achieving net-zero emissions. The International Energy Agency (IEA) highlights that global demand for hydrogen could increase sixfold by 2050, with green hydrogen playing a central role in the energy transition. The European Union, through its Hydrogen Strategy for a Climate-Neutral Europe, also underscores the importance of international cooperation and investment in green hydrogen to meet climate goals.
The World Bank’s support for Ceará’s green hydrogen strategy marks a significant step forward in Brazil’s clean energy transition. By fostering innovation, investment, and inclusive growth, this initiative not only positions Ceará as a leader in the global hydrogen economy but also serves as a model for sustainable development in emerging markets worldwide.
