GoVerde Energia has signed a letter of intent with the Bahia state government to construct an integrated industrial complex for the production of green methanol and ammonia.
Backed by nearly BRL 9 billion (approximately $1.6 billion) in planned investments, the project underscores Bahia’s growing role in South America’s clean energy transformation.
The ambitious initiative includes BRL 5.4 billion ($949 million) earmarked for the hydrogen-based chemical production facility, and BRL 3.6 billion ($632 million) for a large-scale photovoltaic plant. In its first phase, the solar park is expected to generate up to 1.5 GW of power—enough to support upstream production of up to 300 tonnes per day of green methanol and ammonia, along with 155 tonnes of byproduct oxygen. Subsequent phases will increase daily chemical output by 200 tonnes each, although project timelines remain undisclosed.
The development aligns with Brazil’s broader strategy to capture a share of the global hydrogen economy, particularly through leveraging its renewable energy strengths. With abundant solar and wind resources, states like Bahia are positioning themselves as prime locations for large-scale green hydrogen derivatives, including ammonia and methanol for export markets.
Although the final investment decision is still pending, the Bahia Secretariat for Economic Development (SDE) confirmed that the core technologies for the industrial plant will be sourced from Germany. This choice aligns with Brazil’s emerging preference for European electrolyser and hydrogen-to-chemical technology providers, widely regarded for their operational efficiency and compliance with export market standards.
The products from the new industrial complex are intended for international markets, with green methanol particularly gaining traction as a marine fuel and hydrogen carrier. As the shipping industry eyes methanol as a viable route to decarbonization, export-ready green methanol capacity represents both a commercial and geopolitical opportunity for Brazil.
GoVerde’s Bahia announcement follows its earlier partnership with the government of Ceará, where it is collaborating on solar infrastructure within the Pecém Industrial and Port Complex (CIPP). That project forms part of Ceará’s hydrogen hub initiative, which aims to centralize renewable hydrogen production and export operations through port-based industrial zones.
GoVerde’s investment reflects a broader surge of private sector confidence in Brazil’s green hydrogen potential. The announcement comes amid heightened investor interest in Latin American renewables, spurred by rising demand for decarbonized commodities in Europe and Asia, and supported by Brazil’s growing diplomatic and trade engagement on clean energy.
However, the lack of a confirmed FID and specific construction timeline signals that regulatory, logistical, and financing hurdles remain. Brazilian state and federal agencies have yet to implement cohesive hydrogen market regulations, which could impact permitting, grid integration, and export logistics.
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