Amidst Rich Wildlife, Port of Santos Charts a Path to Green Hydrogen

It takes about 15 minutes for the 1930s tram to cover the 7.5-kilometer path to the power plant. During the ride, employees chat about the animals they’ve spotted along the way in previous weeks.

“What about the monkey?”

“It was here last week.”

“Did you see the tapir?”

“I did, but it’s been a while.”

On this journey back to the early 20th century, the Port of Santos is looking to secure its future. “We are the only self-sustaining port in the world,” says Anderson Pomini, 43, President of the Port Authority.

He refers to the Itatinga Hydroelectric Plant in Bertioga, located on the São Paulo coast, which was built to supply the energy needs of the port 30 kilometers away. The current plan is to issue a call for bids in 2025, seeking interested parties to transition the plant to green hydrogen production. According to Pomini, the concession will last at least 25 years.

“A port is a strategic area for hydrogen production, especially for export. Supplying this port with renewable energy leads to local decarbonization and could even enable the use of ammonia as a more sustainable fuel for ships,” says Drielli Peyerl, a senior researcher at the University of Amsterdam and an expert in energy transition, sustainable development, green hydrogen, and the carbon market.

Following an open call, two companies are now preparing feasibility studies to determine the best way to transition Itatinga into the green hydrogen world. Experts believe a mix with other sustainable energy sources—such as wind, solar, or even hydropower—will be necessary.

Green hydrogen is a clean fuel that emits no carbon during production. It’s obtained through a chemical process called electrolysis, where electricity is used to split hydrogen from oxygen in water. However, this technology is far more expensive than conventional energy, raising concerns about the project’s cost.

Currently, producing one kilogram of hydrogen costs around $2 (roughly R$10.90), whereas green hydrogen intended for Itatinga is expected to cost about $5.50 (R$29.90).

Specialists like Drielli believe that with growing interest and research, the cost will decrease over time. American consulting firm McKinsey & Company estimates that Brazil will receive $200 billion (R$1.08 trillion) in green hydrogen projects over the next 20 years.

“We still need to figure out a few things. Is there demand? What’s the market? Who will buy it? We need to understand this before moving forward,” says Rafael Apolinário dos Santos, 33, Utilities Manager at the Port Authority. He points out the potential for export in the form of ammonia, which can later be reconverted into hydrogen.

Pomini’s vision also includes revitalizing the village of Itatinga, which is part of the municipality of Bertioga. The project foresees R$500 million in investments for the transition to green hydrogen, which could decarbonize the Port of Santos and increase the plant’s contribution to the energy supply for the port complex. Current production is operating at nearly half capacity.

The plant currently produces 15 megawatts per hour, but Pomini believes it has the potential to increase to 29 megawatts. With clean energy, he believes the port could be completely powered by Itatinga’s output. Apolinário estimates that about 100 megawatts would be needed to meet the port’s total demand.

The plant’s structure has been preserved since its inauguration in 1910. It has five generators supplying electricity to six terminals. According to Pomini, it could serve more companies, but this didn’t happen because of a choice made during Jair Bolsonaro’s administration (2019-2022). At that time, the priority was to prepare the Port Authority for a privatization that never materialized.

The terminals were instructed not to rely on Itatinga’s energy and encouraged to find alternatives. Many did just that, as the port’s management focused on building financial reserves to make it more attractive to potential buyers, accumulating over R$2 billion.

Before the privatization push, the plant generated R$50 million in annual profit. After losing terminal clients, it became R$8 million in deficit per year.

Whether the plant remains under state control or not is a debate that doesn’t seem to faze Rodolfo dos Santos Neto, 45, the plant’s technical manager for the past 13 years. For him, managing Itatinga is the realization of a family legacy.

His great-grandfather, José Neto Filho, arrived in 1908 to help build the plant. His grandfather, José Neto, worked there, and his father, Bertacínio Neto, was born in Itatinga.

Rodolfo attended the local school, the first one inaugurated in Bertioga in 1918. He was baptized in the Immaculate Conception Church, built in 1942, with stained glass and furnishings brought from England, all still preserved. The sprawling green fields with 61 worker houses—mostly vacant now—were his childhood playground.

“My childhood was in Itatinga. We had a doctor, dentist, cinema, grocery store, bakery, club, church. Working here is like coming full circle,” he recalls, gesturing toward the modest English-style wooden bleachers by the soccer field and a trophy room for staff tournaments.

The idea of building a dedicated power plant came from Eduardo Guinle and Cândido Gaffrée, who were then the main concessionaires of the Port of Santos through the Companhia Docas de São Paulo. They bought the Pelaes Farm at the foot of the Serra do Mar in Bertioga, and construction started in 1906, with the plant inaugurated on October 10, 1910.

Much of what was built in those early years remains today, which is why the Port Authority sees tourism potential. In partnership with the Bertioga City Hall, weekend visits have been offered—40 people per day. The site had been closed since 2012, when 12 people showed symptoms of malaria.

Until 1927, the plant’s energy surplus was used for public lighting in Santos and São Vicente.

“Itatinga once supplied power to the capital,” Apolinário notes.

He adds that there has been interest from companies in taking over the plant for clean energy production, but the Port Authority would still be responsible for maintenance, which he says is not feasible.

Getting to the plant by car is impossible. From Bertioga, a small boat is needed to cross a short distance. From Santos, a speedboat is required with a skilled pilot who knows the varying depths of the canal. The hour-long trip is often accompanied by flocks of scarlet ibises and passes through mangroves, with nearby beaches frequented by millionaires—for example, São Pedro Beach, where ex-Beatle Paul McCartney spent a few days last year.

The transition to green hydrogen is also seen as a potential draw for ecotourism in the region.

However, this could present a challenge, as the initial process for producing green hydrogen requires spotless water. “We’re seeing innovations that could allow for the use of less clean water,” says Drielli.

Rodolfo and the plant’s 20 current employees are concerned about the plant’s future but remain somewhat disconnected from the green hydrogen discussions.

“There are pumas and yellow-headed caimans along the way here,” they point out. “Did you see any?”

Source: Folha de S. Paulo

Click here to access the original news report: https://www1.folha.uol.com.br/mercado/2024/10/entre-jacares-macacos-e-guaras-vermelhos-porto-de-santos-planeja-hidrogenio-verde.shtml

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