Fortescue, Prumo to develop Brazil green H2 project

Fortescue Future Industries (FFI), a subsidiary of Australian mining company Fortescue Metals Group, and Brazil's Prumo Logistica signed a preliminary deal to develop green hydrogen at Prumo's Acu Port in Rio de Janeiro state.

Under their memorandum of understanding, the two companies will conduct feasibility studies to develop solar and offshore wind farms to power a 300MW hydrogen electrolyzer and related installations to produce 250,000 t/yr of green ammonia, Prumo said.

FFI and Prumo did not detail estimated investment.

Prumo sees demand for the green hydrogen from local industries such as steel, fertilizers, chemicals, next generation fuels and other value-added products at the port.

The port, which began operations in 2014, was designated a tax-free export zone in 2017.

The agreement comes on the heels of an announcement by Australia's Enegix Energy to invest $5.4bn in a green hydrogen project in Pecem port in the Ceara state.

Prumo is controlled by the North American investment fund EIG and Abu Dhabi investment fund Mubadala.

Brazil and Chile are emerging as Latin America's green hydrogen trailblazers, taking advantage of extensive renewable energy potential.