Bahia will have an industrial-scale green hydrogen project

Unigel invests R$ 7.8 billion to produce H2V in its factory, which will have a capacity of 100 thousand tons per year by 2027
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Unigel factory, located in Camaçari (BA). Photo: Unigel/Disclosure

A Unigel, one of the largest chemical companies in Latin America, announced that it is investing US$ 1.5 billion (R$ 7.8 billion, at current prices) for the development of a H2V (green hydrogen) in industrial scale in Brazil.

By 2027, the installed capacity of the factory, located in the city of Camaçari, in the State of Bahia, will be 100 thousand tons of H2V per year.

According to company, the project will have contributions in three phases. In the first stage, already under construction, Unigel is investing US$ 120 million and will rely on high-efficiency electrolysis technology from Germany's thyssenkrupp nucera.

“We have numerous differences that allow us to lead Brazil towards the green hydrogen and ammonia economy. First, Unigel already has enough ammonia production capacity to use H2V”, said Roberto Noronha, CEO of Unigel.

“In addition, we have access to infrastructure and clean and competitive energy sources at the Camaçari Petrochemical Complex. Finally, we still operate one of the only two ammonia terminals in Brazil, located in the port of Aratu, also in Bahia”, he added.

At the current moment, Unigel stated that it continues to negotiate strategic partnerships, adequate financing lines and even access to the capital market through an IPO to ensure competitiveness and the implementation of new phases of the program, in addition to growing on other strategic fronts of the company .

“We have the only industrial-scale project under construction in Brazil. Located in Camaçari, our factory should be inaugurated by the end of this year. Unigel and Bahia lead Brazil's pioneering efforts in green hydrogen”, he highlighted.

Brazil's potentials and challenges in the production of green hydrogen

More about the project

According to the company, the initial stage of the investment was the signing of a protocol of intentions, at the end of 2021, between the government of Bahia, through the SDE (Secretariat of Economic Development) and Unigel.

Subsequently, in April 2022, the State Plan for the Green Hydrogen Economy was established by Decree and, in July of the same year, the cornerstone of the company's plant in Camaçari was laid.

“Working to bring this project to fruition is our responsibility and we are certain that Bahia is prepared to put Brazil at the forefront and take the lead in investments in parks that produce clean energy. This demonstrates our permanent commitment to the future of the planet”, emphasized Jerônimo Rodrigues, governor of Bahia.

Unigel's business plan indicated that, as soon as operations begin, the products will be offered to customers who find H2V and green ammonia an important solution to their decarbonization challenges.

Applications include the use of hydrogen in mobility, as a fuel for various types of vehicles, and as a raw material in steelmaking and oil refining. Green ammonia should also be used as fuel, especially by bulk ships and container ships.

Furthermore, they highlighted that green ammonia could strengthen Unigel's portfolio of sustainable products, as it is a raw material in the manufacture of fertilizers and acrylics.

“Given the country’s potential in generating wind and solar energy, I believe there is a great opportunity to be a reference for the world in green hydrogen, a solution that brings versatility by transforming renewable energy into raw materials and Zero Carbon fuels”, concluded Roberto Noronha.

Picture of Mateus Badra
Mateus Badra
Journalist graduated from PUC-Campinas. He worked as a producer, reporter and presenter on TV Bandeirantes and Metro Jornal. Has been following the Brazilian electricity sector since 2020.

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