FRV to invest some $5 billion in 2 GW of green hydrogen capacity in Brazil

From pv magazine Latam

Madrid-based renewable energy development company FRV has announced plans to develop a 2 GW green hydrogen project at the Pecém Industrial and Port Complex (CIPP) in the Brazilian state of Ceará.

Part of the Saudi group Jameel Energy, FRV is one of several companies that has already signed contracts with the Ceará government for the production of green hydrogen and its derivatives in the state.

FRV's H2 Cumbuco project will focus on the production of green ammonia for export, particularly to the European and Asian markets. The company plans to invest some BRL 27,000 million ($5 million) in the endeavor, which is estimated to create 1,500 jobs during construction and more than 200 during operation. H2 Cumbuco is estimated to reach a total capacity of 2 GW.

The first phase of the project, budgeted at BRL 7 billion, includes 500 MW of electrolyzers that will produce 400,000 tons of ammonia annually. The second phase, which will require an additional investment of BRL 20 billion, will expand to 2 GW of electrolyzer capacity and increase ammonia production to a total of 1.6 million tons per year.

Manuel Pavon, general director of FRV South America, said construction of H2 Cumbuco would likely begin in 2027, with operations expected to start between 2029 and 2030. The company selected the strategic Port of Pecém site due to the accessibility of the U.S. and European markets, Pavon added.

FRV stressed adherence to strict European regulations and sustainability principles in executing the project, adding that it would be carried out at a very competitive cost. The project will use renewable energy and recycled water.

“This reuse of water will generate a circular economy and will not compete with human supply,” said Neuri Freitas, president of the Ceará Water and Sewage Company (Cagece).

FRV has also signed a memorandum of understanding with Utilitas Pecém, a joint initiative between Cagece and Fortaleza-based infrastructure and construction company PB Construções that offers industry sustainable and innovative solutions in infrastructure and basic sanitation.

In addition to FRV, the state has signed five other precontracts with AES, Casa dos Ventos, Fortescue, Cactus and Voltalia as well as 37 memorandums of understanding with Brazilian and international companies.

Assessing the project's impact on the state's socioeconomic development, Ceará Governor Elmano de Freitas said, “The Port of Pecém is a rich area. We want to develop, but we also want the town of Ceará to grow as the Port of Pecém grows. I am very enthusiastic about this innovative FRV project.”