Port of Pecém inks hydrogen investment pre-contract; 3 more expected by the end of the year

Porto do Pecém signed yet another pre-contract for investments in green hydrogen, this time with AES Brasil. The partnership was confirmed on the second day of discussions at the Proenergia Summit 2022, September 22. On that same day, Danilo Serpa, president of the Pecém Industrial Port Complex, announced three other agreements by the end of the year.

How much will be invested and the dimension of AES’ hydrogen production plant is still unknown since the company still has to conduct feasibility studies to measure these factors and confirm its strategy, said Ítalo Freitas, vice president of operations development in Brazil.

“The cost of the investments will depend a lot on when we start the plant construction. The current contract calls us to start feasibility studies, determining the total investment required. The hydrogen market is emerging now, and demand is building up. The level of demand will also determine the investment size,” said Italo.

“The study is expected to have a duration of 6 to 8 months. The important thing is to assess the production conditions in Ceará and, then, the process will depend exclusively on market conditions,” he commented.

The pre-contract initially foresees the production of up to 2 gigawatts (GW) of green hydrogen from up to 800 thousand tonnes of green ammonia per year. According to market estimates, this investment can range from US$ 2 billion to US$ 4 billion.

Upcoming pre-contracts

During the event, the president of the Pecém Complex confirmed that three new pre-contracts should be signed by the end of 2022. Without giving further details, Serpa confirmed that the companies are “of the same size” as AES, indicating they could also be multinationals.

“Since green hydrogen is a relatively new trend, we follow the steps taken worldwide. Pecém has taken the lead in Brazil; as a result, this is our second pre-contract with a multinational organization. These companies are not in the business of making predictions. The work we are doing in the port and at the free-trade zone has culminated in closing these agreements,” said him.

“In the next 45 days, we should have two new pre-contracts to sign, and by the end of the year, we should reach the fifth, materializing all this effort. We are keeping up with global tendencies,” he added.

Source: Diário do Nordeste

To read the full original article, please go to: https://diariodonordeste.verdesmares.com.br/opiniao/colunistas/samuel-quintela/porto-do-pecem-assina-pre-contrato-para-investimento-em-hidrogenio-e-aguarda-mais-3-ate-o-fim-do-ano-1.3281156

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