First phase of Fortescue in Pecém approved for H2V production

On Wednesday (9), Governor Elmano de Freitas, alongside Vice President of the Republic and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin, signed off the first phase of Australian company Fortescue’s green hydrogen (H2V) industrial project. The project, set to be located on a 121-hectare site in Sector 2 of Ceará’s Export Processing Zone (ZPE Ceará), represents a total investment of up to USD 5 billion (approximately BRL 20 billion). The project had received favorable approval from the National Council of Export Processing Zones (CZPE) earlier.

According to the governor, this is a significant step for Ceará in the clean energy transition market. “This is crucial for our Green Hydrogen production project. This morning, the National ZPE Council approved one of the H2V production projects, with an investment of USD 5 billion, which will allow us to establish the first large-scale production of Green Hydrogen. We already have an initial investment of BRL 100 million from this company for site preparation, paving the way for the plant’s construction,” Elmano highlighted. “This approval enables Ceará to dream big and position itself as a major hub for H2V production,” he emphasized.

Fortescue was the first company to sign a pre-contract establishing an H2V plant in the Pecém Complex. With this approval, the company is now authorized to build its facility for producing and distributing H2V at ZPE Ceará. The project is expected to create up to 5,000 jobs during the implementation phase alone.

The Fortescue project has the potential to produce around 500 tonnes of green hydrogen per day, utilizing 1.2 gigawatts of renewable energy. The Environmental Impact Study, presented in August 2023, was approved a year ago by the State Environmental Council (Coema). Fortescue’s green hydrogen plant was the first H2V project to receive approval from the council in Ceará. The Australian company announced in July that earthworks should begin by the end of this year.

According to Luis Viga, Fortescue’s country manager in Brazil, regimes like the ZPE are crucial due to the competitive advantages they offer to all stakeholders, including federal and state governments, the Pecém Complex, and the industry. “This is another step toward ensuring that Brazil can realize its potential to become a global leader in the transition to a low-carbon economy, which hinges on the successful implementation of Green Hydrogen as a viable energy source and industrial input,” said Viga.

Securing Infrastructure Projects

In addition to meeting with the vice president, the governor attended several meetings in Brasília to secure funding for key infrastructure projects in Ceará. Among the positive outcomes were assurances of financing to expedite the Transnordestina railway project and the commencement of work to expand the BR-116 highway in November 2024.

The governor also noted that, during a meeting with Transport Minister Renan Filho, it was confirmed that the expansion of the BR-116—specifically the section leading to the municipality of Tabuleiro do Norte—would begin in November. “Minister Renan Filho reaffirmed that work on the BR-116 expansion will begin by mid-November, which is crucial for the state’s infrastructure,” the governor said.

Earlier in the day, during a meeting with the Minister of Integration and Regional Development, Waldez Góes, discussions included both the Transnordestina project and the completion of the Cinturão das Águas do Ceará (CAC) water pipeline. The expectation is that this project will be completed by 2025. Waldez Góes is expected to visit Ceará to oversee work on the Salgado Branch, which is part of the São Francisco River Transposition Project and involves investments of BRL 350 million.

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