Shell and Brazil’s Porto Do Acu to develop green hydrogen project
The signing of this agreement is a milestone in the development of the green hydrogen market in Brazil.
Shell and Porto do Açu signed an MoU for the joint development of a pilot plant to generate green hydrogen at the port facilities located in the northern region of the country Rio de Janeiro state.
The project is a pioneer in Brazil and will work as a research laboratory to develop learning, carry out decarbonization tests and boost this industry in the country.
The resources for the construction of the unit come from the Research, Development & Innovation (RD&I) clause of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), which determines the mandatory application of a percentage of the gross production revenue, in projects that stimulate research and the adoption of new technologies in the energy sector. Shell is expected to invest between US$60 million and US$120 million in RD&I in 2022.
The pilot plant, which should be ready in 2025, will have an initial capacity of 10 MW and may reach 100 MW, in line with the unit’s expansion plan. Initially, electricity from the national grid will be connected to the electrolysis plant, whose main product will be renewable hydrogen. Part of this generated hydrogen will be destined for storage and subsequent shipment to potential consumers. The remaining hydrogen is destined for the renewable ammonia generation plant.
“With this pilot, we aim to promote the entire development of the value chain of renewable hydrogen generation, from the technology suppliers, through the domain of plant operation to the training of specialized labor,” declared the president of Shell Brasil, André Araujo.
“Porto do Açu’s world-class infrastructure is an essential component for accelerating the development of low-carbon projects and for the decarbonization of the industry. We are very happy to join forces with Shell and contribute to the transition efforts towards a low carbon economy,” said José Firmo, CEO of Porto do Açu.
Shell has hydrogen generation projects in Germany, the Netherlands and China. Porto do Açu is a multi-business platform, developed by Prumo Logística, controlled by EIG Energy Partners, a leading institutional investor in the global energy and infrastructure market.