European Union (EU) has pledged support for the construction of a 10-gigawatt (GW) green hydrogen and ammonia plant in Brazil. European Commission President Ursula von der Leyen announced the initiative during her speech at the European Hydrogen Week, unveiling the EU's commitment to the project as part of the EUR 2 billion (USD 2.2 billion) Global Gateway investment in Brazil's hydrogen value chain.
The groundbreaking facility is slated to be situated on the northeastern coast of the state of Piaui, within the Parnaiba Export Zone (ZPE). Green Energy Park (GEP), a European company, will spearhead the construction of the plant, with groundbreaking scheduled for late 2024 and operations expected to commence in 2026, as per Brazil's Ministry of Mines and Energy (MME).
The project holds strategic importance, with its output destined for shipment to the island of Krk in Croatia. From Krk, the hydrogen will be supplied to industrial off-takers in South-East Europe, further solidifying the global reach of sustainable energy solutions.
Brazil, recognized for its substantial potential in low-carbon hydrogen production, estimates an annual capacity of 1.8 gigatonnes. With approximately USD 30 billion (EUR 27.4 billion) already earmarked for low-carbon hydrogen projects in the country, the collaboration between the EU and Brazil marks a significant step in fostering international cooperation for a more sustainable and hydrogen-powered future.
