The northeastern Brazilian state of Ceará and Fortescue Future Industries (FFI) have reinforced their commitment to constructing a green hydrogen project that could produce green hydrogen on a big scale as early as 2027 at the 27th UN Conference on Climate Change (COP27) in Sharm El Sheikh, Egypt on November 9th.
Ms Izolda Cela (the governor of Ceará and representatives of the Pecém Industrial and Port Complex) joined Dr Andrew Forrest (the organisation’s founder and chairman of FFI) and Mr Agustin Pichot (president for Latin America), signed and agreed on an amendment to the memorandum of understanding (MoU). The MoU was signed in the middle of 2021, directing FFI to prioritise the Pecém project and related feasibility studies.
The amendment expands the agreement to cover 20 years, extendable for 20 years. It reinforces existing MoU commitments, including establishing guidelines to support the development of a local green hydrogen industry in the State of Ceará.
The amendment also supports the State of Ceará’s initiatives to promote significant financial contributions for constructing a green hydrogen hub at the Pecém Industrial and Port Complex, fostering financial and legal stability.
For the Pecém Project, FFI is currently working to secure licenses, ensuring early engagement with the involved communities. The local government will support the project’s need for land, including that needed to house transmission lines and substations that will connect to the network.
If the continuing feasibility studies confirm the project’s viability, FFI plans to make a definitive investment decision by 2024 and start large-scale hydrogen production in Ceará in 2027.
According to Dr Forrest:
“We are committed to helping to drive the development of a green hydrogen sector in Brazil, not only because of the environmental benefit that will come from ending the world’s reliance on fossil fuels but also because of the economic benefits that the green energy transition can bring to local communities. Our studies into a project in Pecém will be informed by the knowledge we have amassed over the last 18 months from across our global portfolio of renewable energy projects and the research and development we’ve completed, including how best to work with local stakeholders to prevent and reduce any impact on local eco-systems.”
Emphasised by Gov Izolda Cela:
“Our dialogue with Fortescue has been very productive, with pre-contract signing, significant investments and union for the strengthening of Ceará in the production of Green Hydrogen. This will positively impact our economy, generating more opportunities for the people of Ceará, and put us in a prominent position in producing renewable energy”.
Pecem Project at a glance
In the Port of Pecem, Ceará, Brazil, there is a project called the Pecem Project that produces green hydrogen and its derivatives. The project incorporates the entire value chain for its industrial production.
Renewable Power Purchase Agreements (PPAs) will be the energy source for this project’s manufacturing of green hydrogen and other environmentally sustainable products.
The project is currently in the conceptual stage, during which environmental and social impact studies will be conducted to examine and identify opportunities for the production of green hydrogen in the area while considering the preservation of communities and biodiversity.
About Pecém Industrial and Port Complex
The State of Ceará in Brazil and the Port of Rotterdam in the Netherlands have partnered to create the Pecém Industrial and Port Complex. A multinational corporation is managing and expanding a port and industrial complex on the west coast of Ceará that spans more than 19,000 hectares. It comprises the subsidiary ZPE Ceará, the country’s first free trade zone, and the Port of Pecém, a top-notch offshore terminal. The complex is home to some of the leading manufacturing facilities in northeastern Brazil.
About Fortescue Future Industries (FFI)
Fortescue Future Industries is a global green energy company committed to producing zero-carbon green hydrogen from 100 percent renewable sources.
Dr Andrew Forrest established the green hydrogen subsidiary Fortescue Future Industries off the strength of this business to produce 15 million tonnes of green hydrogen annually by 2030.
Green hydrogen is a fuel that emits no emissions and only water when used. Decarbonising heavy industry and generating global employment are feasible and implementable solutions to revolutionise how we power our planet.
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