The World Bank’s Board of Directors has approved a new initiative aimed at advancing the green hydrogen strategy of the Pecém Industrial and Port Complex Company (CIPP) and the Government of Ceará. The project will support the development of clean hydrogen production at the Pecém Complex, positioning the Brazilian state of Ceará as a leader in the global shift toward sustainable energy. In addition to contributing to climate goals, the initiative is expected to generate employment, foster inclusion, and enhance long-term climate resilience.
Situated in Northeastern Brazil, the CIPP is a key industrial and logistics hub and is considered one of the most promising locations for green hydrogen development in the country. With backing from both the state and federal governments, the complex is poised to play a central role in Brazil’s energy transition.
The project focuses on building essential infrastructure to attract private investment in the production of clean hydrogen and its derivatives. It incorporates global best practices, drawing insights from similar World Bank-supported initiatives in countries like Chile and India. Alongside environmental benefits such as emissions reduction, the project aims to create new economic opportunities for both local communities and the wider Brazilian energy sector. It is expected to benefit private investors, local industries, and the broader public through climate-focused growth and sustainable job creation.
“This support from the World Bank marks a historic step for the Pecém Complex and for Ceará,” said Max Quintino, president of CIPP. “We are taking real strides in establishing a green hydrogen hub that will help position Brazil as a global leader in the energy transition. Strengthening our infrastructure not only attracts investment but also brings tangible benefits to the people of Ceará.”
Jorge Coarasa Bustamante, World Bank Operations Manager for Brazil, added, “Ceará is preparing for the future by investing in green hydrogen and laying the groundwork for a more sustainable, competitive, and inclusive economy. This program plays a vital role in generating jobs and supporting clean growth, especially in areas that have traditionally been underserved.”
The project aligns closely with Brazil’s broader climate and development strategies, including its updated Nationally Determined Contribution (NDC), the National Hydrogen Program, and the New Brazil Industry Policy. At the state level, it supports Ceará’s “Plano Verde” and ongoing federal and regional efforts to promote a low-carbon economy through the growth of a domestic green hydrogen industry. Though Ceará remains one of Brazil’s less affluent states, it is emerging as a crucial player in decarbonizing sectors such as transportation and heavy industry.
Financing for the project is provided through the World Bank’s Investment Project Financing (IPF) mechanism. The total funding amounts to US$134 million, which includes a US$90 million loan from the International Bank for Reconstruction and Development (IBRD), a US$9 million grant from the IBRD Surplus-Funded Livable Planet Fund, a US$33.5 million loan from the Climate Investment Funds (CIF) under the Renewable Energy Integration (REI) Program, and a US$1.5 million CIF REI grant.
