Cactus Energia Verde is currently engaged in discussions with the administration of Pecém Port in Brazil’s Ceará state to secure an area for the development of a green hydrogen plant.
Lúcio Bomfim, a partner at Cactus Energia Verde and executive director of BI Participações em Investimentos, shared this information with BNamericas. The project, outlined in a memorandum of understanding (MoU) signed with the government of Ceará in 2022, entails a substantial investment of €5 billion (US$5.4 billion) for the construction of a plant capable of producing 120,000 tons per year of green hydrogen, 958,000 tons per year of green oxygen, and 640,000 tons per year of green ammonia.
Cactus Energia Verde plans to utilize energy from the Uruquê PV solar park, a project with an installed capacity of 2.4 GW, set to be implemented by Uruquê Energias Renováveis in Jaguaretama and Umari. Additionally, an offshore wind farm with a capacity of 1.2 GW, to be developed by BI Energia in Camocim, will contribute to the production of green hydrogen. While Uruquê has already obtained the environmental license from the state, awaiting only authorization from Aneel, the Camocim plant is currently under analysis by Ibama.
The choice of energy sources, such as the Uruquê PV solar park and the offshore wind farm, will ultimately depend on the future investors of the hydrogen plant. Cactus Energia Verde is currently in discussions with potential foreign investors who have expressed interest in the project. Notably, Pecém Port is partnered with the Rotterdam port in the Netherlands, which is preparing to import green hydrogen from other countries to meet Europe’s demand. Pecém aims to establish a pipeline network to connect the hydrogen plants to the storage facilities and facilitate the export of green hydrogen to Europe.
The development of a large-scale green hydrogen plant in Brazil holds significant promise. It aligns with global efforts to transition towards a sustainable energy future and decarbonize various industries, including transportation, power generation, and manufacturing. Green hydrogen has the potential to play a vital role in reducing greenhouse gas emissions and mitigating climate change. The ambitious project by Cactus Energia Verde not only aims to contribute to Brazil’s clean energy goals but also positions the country as a potential exporter of green hydrogen, tapping into the growing global demand for this clean energy source.
While the project shows great potential, there are challenges to be addressed. These include securing investments, obtaining necessary approvals and authorizations, ensuring the availability of renewable energy sources, and establishing an efficient supply chain for exporting green hydrogen. Overcoming these hurdles will require collaboration between various stakeholders, including government entities, private investors, and technology providers.