Shell has signed a memorandum of understanding with the Port of Acu in Rio de Janeiro to develop a green hydrogen pilot project.

The plant will have an initial capacity of 10MW, with the potential for this to rise to 100MW, and is expected to come online in 2025.

“This is a project of immense importance not only for Shell and its partners, but also for Brazil,” says Shell Brazil’s president, Andre Araujo.

“With this pilot, we aim to promote the entire development of the value chain of renewable hydrogen generation, from the technology suppliers through to the plant’s operation and the training of specialised labour.”

Shell will support the project through an investment of $60-120mn this year in the research, development and innovation arm of Brazil’s federal agency for petroleum, natural gas and biofuels, the ANP.

“This is a project of immense importance not only for Shell and its partners, but also for Brazil” Araujo, Shell

The project’s electrolyser will initially draw power from the national grid. Some of the hydrogen produced will be stored for shipment to potential consumers, with the rest expected to be used as feedstock for ammonia production at the port complex.

Acu has been in operation since 2014 and is considered by Shell to be a gateway to low-carbon investment in Brazil. The port handles about a third of Brazil’s oil exports and operates one of the country’s largest iron ore terminals.

“The signing of this agreement is a milestone in the development of the green hydrogen market in Brazil,” says Acu CEO Jose Firmo.

Brazil could become one of the world’s leading producers and exporters of green hydrogen because of its wind and solar energy potential and its geographical advantages for shipping to Europe and the US east coast, according to consultancy McKinsey. The landed cost of Brazilian green hydrogen could be competitive with exports from other countries, it adds.

Brazil will need to invest c.$200bn in green hydrogen to fulfil its potential, part of which would be spent on adding 180GW of renewable power generation—more than the country’s current installed capacity—according to McKinsey.

---

Author: Stuart Penson