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A $134 million study will subsidize green hydrogen generation in Ceará.

World Bank financing seeks to ensure sustainable supply of industrial water for projects in the Port of Pecém

Canal Solar - US$134 million study will subsidize green hydrogen generation in Ceará

The Port of Pecém has been modernized to become a Green Hydrogen Hub. Photo: Disclosure/Pecém Complex

As critical as the availability of clean and abundant electricity is for the generation of green hydrogen, the supply of water in large volumes is also essential for electrolysis, a key electrochemical process for the production of gaseous energy.

The challenge is to exploit water resources while causing the least possible socio-environmental impact in a region with a historically dry climate, such as Ceará, which is also one of the Brazilian states most sought after by international entrepreneurs for the implementation of green hydrogen complexes.

Sensitive to this issue, the World Bank has pledged US$134 million to finance a broad project aimed at ensuring a sustainable supply of industrial water in volumes suitable for the production of green hydrogen.

In parallel, the objective is also to improve access to water for the populations neighboring the Port of Pecém, a location that has been leading the preference of foreign companies interested in investing in the generation of green hydrogen on a large scale for export.

The preliminary study for the feasibility of this is being carried out by Rina, an engineering company based in Italy, which will develop the project in partnership with Krypton.

Technology selection

Among the aspects foreseen in the preparation of the study, there is:

  • Comparative analysis of the feasibility of effluent reuse versus seawater desalination;
  • Assessment of environmental impacts associated with each strategy;
  • Projection of water demand at the Port of Pecém over the next 5 to 10 years – aligned with the region’s industrial growth;
  • Analysis of regulatory compliance and infrastructure to ensure proper use of existing water supply systems.

The contract with the World Bank also involves the development of a complete inventory of GHGs (Greenhouse Gases), an energy balance, and a decarbonization plan for the region's energy-intensive industrial hub.

Among other initiatives aimed at attracting investment, the state government created the Ceará Green Plan, aligned with the energy transition. To date, approximately 40 memoranda of understanding have been signed with national and international companies for green hydrogen production, six of which have already been converted into pre-contracts.

Financial support from the World Bank is provided through an IPF (Investment Project Financing) instrument. The total value of US$ 134 million includes:

  • US$90 million loan from the World Bank;
  • US$9 million grant from the World Bank Surplus-financed Habitable Planet Fund,
  • US$33,5 million loan from CIF (Climate Investment Funds) under REI (Renewable Energy Integration Program),
  • US$1,5 million CIF REI donation.

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Antonio Carlos Sil
About the Author
Antonio Carlos Sil

Antonio Carlos Sil is a journalist graduated from FMU/FIAM. He worked as a reporter for Brasil Energia, in addition to providing services to Agência Estado, Exame and Canal Energy. Worked in communications consultancies for CPFL Energia, CESP and AES Tietê. Has covered the electricity sector since 2000. Has experience covering events such as energy auctions, conventions, lectures, fairs, congresses and seminars.

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