Hydrogen News from South America (March 2025)

Brazil MME Announces the Selection F 12 Projects for the Creation of Hydrogen Hubs

 (PN) The Ministry of Mines and Energy (MME) announced the selection of 12 low-carbon hydrogen hub projects for the decarbonization of Brazilian industry. The projects chosen in the public call notice were presented by the following companies: CSN Group, EDP Renováveis ​​Brasil, Neoenergia, Atlas Agro, Petrobrás, Prumo Logística, Copel GET, Solatio Holding Gestão de Projetos Solares, Eletrobras, Cemig Geração e Transmissão, Ecohydrogen Energy and Complexo Industrial Port Suape.

The proposals included the production of hydrogen from various sources, such as electricity connected to the National Interconnected System (SIN) grid, wind, solar, ethanol, biomass and others. The production capacity varied between 1,000 and 350,000 tons of hydrogen per year, depending on the project.

A total of 70 proposals were submitted, with projects from 20 states, covering all regions of Brazil. The 12 companies selected will now enter a new stage, which will consist of presenting the projects in detail to better characterize the project data and how CIF-ID resources can be allocated to support its viability.

The best-evaluated project proposals will be able to compete for resources from the international fund Climate Investments Funds – Industry Decarbonization CIF-ID, in which Brazil is participating under the coordination of the Secretariat for International Affairs (SAIN) of the Ministry of Finance, with the participation of the MME and MDIC.

“The results indicate the great potential of low-carbon hydrogen hubs as an inducer of industrial decarbonization in Brazil. The proposals indicate the use of hydrogen for the production of green steel, aluminum, fertilizers, in refining processes and production of e-methanol”, highlighted the National Secretary of Energy Transition and Planning of the MME, Thiago Barral.

See the complete list of selected projects, listed according to their placement in this first phase of the public call:

H2Orizonte Verde Project – CSN Group (RJ)
DRHy – EDP Renováveis ​​Brasil (CE)
Camaçari H2V HUB – Neoenergia (BA)
Uberaba Green Fertilizer (UGF) – Atlas Agro (MG)
Hydrogen Hub – São Paulo – Petrobras (SP)
H2 Açu Hub – Prumo Logística (RJ)
B2H2 – Copel GET (PR)
H2AL-BRUK – Solatio Holding Solar Project Management (SP)
Cubatão H2V Hub – Eletrobras (SP)
Hydrogen and Ammonia Hub in MG – Cemig Generation and Transmission (MG)
H2V Project – Ecohydrogen Energy (BA)
Suape TE HUB – Suape Industrial Port Complex (PE)

Link:https://fuelcellsworks.com/2025/01/01/news/brazil-mme-announces-the-selection-f-12-projects-for-the-creation-of-hydrogen-hubs

Shell Shifts Focus to 200MW Flagship Green Hydrogen Project in the Netherlands, Scraps Pilot in Brazil Amid Cost and Supply Chain Challenges

The company’s strategic focus has shifted to maximizing returns through ongoing projects, such as its hydrogen plant in the Netherlands and key oil and gas initiatives in Brazil.

Shell has announced a pause in its research and development project for a green hydrogen pilot plant at the Port of Açu in Brazil. This move coincides with a slowdown in offshore wind projects worldwide. This strategic shift aligns with the company’s broader focus on prioritizing high-return activities, including oil, gas, and biofuels.

Focus on Hydrogen in Europe

Shell’s CEO in Brazil, Cristiano Pinto da Costa, confirmed that the company’s global hydrogen strategy centers on completing its 200 MW electrolyzer plant in the Netherlands. This facility, the largest of its kind, is expected to produce 60,000 kilograms of renewable hydrogen per day. The plant’s output will primarily decarbonize Shell’s refining and petrochemical operations. “The strategy is to finish building this hydrogen plant, get the business up and running, and learn from mistakes and successes before opening new fronts,” said Pinto da Costa.

Challenges and Market Realities

Shell has encountered difficulties securing long-term hydrogen supply contracts and managing high production costs. In Brazil, the planned 10 MW electrolyzer at Port of Açu, initially slated for 2025, has been put on hold. Current hydrogen efforts in Brazil are limited to academic studies and a pilot project with the University of São Paulo to test ethanol-to-hydrogen conversion for bus fleets.

Offshore Wind Projects on Hold

Shell is also slowing its offshore wind developments, including 7.9 GW of potential projects across North America, Europe, and Asia, as well as 17 GW in licensing applications in Brazil. Rising costs and supply chain challenges have prompted the company to delay these initiatives. “The cost of developing a project has grown too much,” Pinto da Costa stated, emphasizing the competitiveness of onshore wind and solar over offshore alternatives.

Oil and Gas Remain Priorities

While renewable energy projects are delayed, Shell continues to advance oil and gas initiatives in Brazil. A final investment decision (FID) on the Gato do Mato project in the Santos Basin is expected by April 2025. The project includes a floating production storage and offloading (FPSO) vessel capable of processing 120,000 barrels of oil equivalent per day. Shell is also planning exploratory drilling in the Campos Basin for the Ariranha prospect by mid-2025.

Link: https://fuelcellsworks.com/2025/01/07/green-hydrogen/brazil-shell-pauses-green-hydrogen-pilot-at-brazil-s-port-of-acu-and-slows-global-offshore-wind-development-amid-rising-costs-and-supply-chain-challenges

Peru Greenlights Landmark $11.2 Billion Green Hydrogen Project in Arequipa

Peru’s Ministry of Production has approved a monumental $11.2 billion investment for a green hydrogen production facility in Arequipa, marking a significant advancement in Latin America’s sustainable energy sector.

Peru has made a significant stride in the sustainable energy landscape by approving the Detailed Environmental Impact Study (EIA-d) for the Green Hydrogen Production Plant – Horizonte de Verano project. Spearheaded by Horizonte de Verano SAC, this initiative is heralded as the largest green hydrogen project in Latin America, with a hefty investment exceeding US$ 11.2 billion.

Situated in Arequipa, the project aims to produce green hydrogen primarily for ammonia synthesis, a crucial ingredient in both the chemical and energy sectors. The comprehensive plan includes the construction of a water desalination facility and a photovoltaic solar plant, highlighting the project’s commitment to environmental sustainability.

This approval signifies a pivotal development in Peru’s industrial strategy, emphasizing innovation and eco-friendly practices. Green hydrogen, derived from renewable sources like solar and wind power, plays a vital role in reducing greenhouse gas emissions and transitioning towards a cleaner global economy.

Sergio González Guerrero, the Minister of Production, emphasized the project’s significance, stating, Minister González Guerrero reaffirmed PRODUCE’s commitment to sustainable development: “The world is moving towards cleaner and more sustainable energy, and Peru cannot be left behind. This is just the beginning of a new era for the national industry, in which innovation and sustainability will be fundamental pillars for economic growth.”

Sergio González Guerrero, highlighted its relevance: “The approval of this project represents a milestone for the sustainable industrialization of Peru, consolidating us as a key player in the production of green hydrogen, an essential resource for the global energy transition. This plant will not only boost employment and development in Arequipa, but will also position us at the forefront of the clean chemical and energy industry in Latin America.”

Peru’s strategic geographic location, coupled with an abundance of renewable resources and competitive production costs, positions it as a potential leader in the global green hydrogen market. Minister González Guerrero also reaffirmed PRODUCE’s dedication to fostering an economy where innovation and sustainability are cornerstones of growth.

Link: https://fuelcellsworks.com/2025/03/06/green-hydrogen/peru-greenlights-landmark-11-2-billion-green-hydrogen-project-in-arequipa

AES Chile Submits EIA for $10B Green Hydrogen and Ammonia Project

Metin: AES Chile has submitted the Environmental Impact Study (EIA) for the INNA project, its first industrial-scale green hydrogen and ammonia initiative in the country. The project, located in Taltal, Antofagasta region, which is in an initial development stage, is aligned with Chile’s National Green Hydrogen Strategy.

“Although this project is in an early stage of development and the investment decision will have to be made later, the presentation of the EIA is a fundamental step to ensure the viability of the initiative,” said Javier Dib, General Manager of AES Andes.

“AES Chile is accelerating the future of energy, creating opportunities that diversify Chile’s energy matrix and support the country’s sustainable energy goals. As with all of our projects, our partnership with local communities and stakeholders is a priority. We want to strengthen local development, while maintaining the highest environmental and safety standards,” Dib continued.

To support this project, a Memorandum of Understanding (MOU) was signed between AES Andes and Samsung C&T, a major Korean company with experience in energy and construction, which was recently awarded the contract for the first green ammonia receiving terminal in Korea.

The two companies are currently evaluating the joint development of the project, focusing on opportunities to produce green hydrogen for domestic consumption or for export to international markets.

The project submitted to the SEA includes the production of green hydrogen and ammonia, as well as the development of solar, wind and battery storage energy, in line with the needs of the project and to support the country’s electricity generation.

“The company has carried out dedicated community engagement work with special attention to the Chango communities present in the area, as well as other relevant actors. We will maintain this commitment to collaborative work as we move forward with the environmental processing of Inna,” said Luis Sarrás, Vice President of International Green Hydrogen at AES.

About AES ANDES

AES Andes generates and sells energy in Chile, Colombia and Argentina. The company operates 5,737 MW in South America along with a broad portfolio of renewable energy projects under development. The company is one of the leading generating firms in the region, with a diversified portfolio that includes hydroelectric, wind, solar, energy storage, natural gas and coal plants.

In Chile, AES Andes and its subsidiaries own and operate 3,965 MW, consisting of 1,645 MW of thermoelectric, 771 MW of hydroelectric, 431 MW of wind, 667 MW of solar photovoltaic, and 451 MW of battery energy storage systems, as well as seawater desalination plants and transmission lines.

Link: https://fuelcellsworks.com/2024/12/23/fuel-cells/aes-chile-submits-eia-for-10b-green-hydrogen-and-ammonia-project

Nigeria, China Sign €7.6B Clean Energy Deal

Nigeria and China have signed a €7.6 billion (Euros) green hydrogen energy deal that will lead to a gradual transition from fossil fuels to clean energy, in line with global best practices.

The agreement was signed at the weekend in Uyo, the Akwa Ibom State capital, between the Federal Government, APPL Hydrogen Limited (AHL), and a Chinese firm, LONGi Green Energy Technology Company Limited (LGETCL).

The Minister of Innovation, Science and Technology, Chief Uche Nnaji, signed the agreement on behalf of the Federal Government while the Chief Visionary Officer (CVO) of APPL Hydrogen Limited, Mr. Idara Ekpo, endorsed the agreement for the company and the Vice President of LONGi (Europe), Francois Cui, led the Chinese delegation to close the deal.

The project would be located within the Liberty Free Trade Zone (LFTZ) at Atabrikang in Ibeno Local Government Area of the state.

Other members of his team were Monica Ping (Technical Director for Europe), Jim Huang (General Manager for Europe), and Arinze Onyeabo (Business Development Director for West Africa/Technical Manager for Europe).

LONGi, according to the Memorandum of Understanding (MoU), is a world leader in clean energy transition, while AHL is a Nigerian company that provides clean and environmentally-friendly fuel.

Nnaji said his visit to the project site and to witness the exchange of agreement “is a testament to the Federal Government’s commitment to advancing renewed energy, industrialisation and technology-driven innovation as key drivers of economic growth”.

He added: “The project represents a significant step in Nigeria’s journey towards a sustainable energy future.

“As the global energy landscape shifts towards cleaner alternative, investments in green hydrogen, green methanol and green ammonium production place Nigeria at the forefront of green energy innovation.”

The minister listed the benefits of science and technology integration in the sector to include industrial development, job creation, foreign investment attraction, as well as establishing Nigeria’s position in the global energy market.

According to him, the AHL project aligns with national priorities, particularly in fostering a robust research and development ecosystem that supports sustainable energy solutions.

Nnaji stressed that “the Federal Government will collaborate with the Akwa Ibom State government in the areas of investment and technological advancement”.

He called for synergy between public and private sector stakeholders to enable the project achieve the desired success.

The Managing Director of Oil and Gas Free Trade Zone Authority, Alhaji Bamanga Usman Jada, described the project as “one that will diversify Nigeria’s economy, encourage export and help solve the issue of foreign exchange”.

He added: “It will lead to technology transfer, create massive employment for our people, and it is environmentally friendly and sustainable.”

The CVO of APPL Hydrogen Limited, Idara Ekpo, explained that his company was going into the green hydrogen project because the world is moving towards green hydrogen to mitigate the effect of climate change.

Link: https://fuelcellsworks.com/2025/02/24/green-hydrogen/nigeria-china-sign-7-6b-clean-energy-deal

Yamna Secures Land at Port of Açu for Gigascale Green Ammonia Hub, Targeting 1 Million Tonnes Annual Production by 2030

YamnaCo has secured additional land at the Port of Açu, Brazil, for a gigascale green hydrogen-based ammonia project targeting one million tonnes of annual production by 2030.

  • The project, requiring 1.8GW of electrolyzers, represents a significant step toward decarbonizing Brazil’s industrial and export sectors.

YamnaCo has finalized a land reservation agreement with the Port of Açu for a significant green ammonia project, marking a substantial development in Brazil’s renewable energy sector. This project is set to produce up to one million tonnes per year of green ammonia and is a key part of Brazil’s efforts to decarbonize its industry.

The green ammonia hub will be located in the industrial complex of the Port of Açu in Rio de Janeiro, requiring about 1.8GW of electrolysers for its targeted ammonia production capacity.

The Port of Açu, known for handling 40% of Brazil’s oil exports, offers optimal infrastructure for supporting sustainable industrial processes, including deep draft and direct quay access.

Strategic Location and Infrastructure

Situated northeast of Rio de Janeiro, the Port of Açu is one of Brazil’s major oil and gas export hubs, handling 40% of the country’s oil exports. The port’s infrastructure—including deep draft access, extensive available land, and a service cluster for maritime support—makes it ideal for green hydrogen and ammonia production. Owned by Prumo Logística and Port of Antwerp-Bruges International, the port facilitates sustainable industrial development in the region.

Project Milestones and Timeline

Under the agreement, Yamna will expand its allocated land from 1 square kilometer to 3 square kilometers. The company plans to reach a final investment decision (FID) in 2027, with the first production of green ammonia expected by 2030.

“The process leading to the signature of the land reservation agreement has been highly collaborative and efficient, and we are confident that this strong cooperation will continue throughout the next phases of the project,” said Yamna’s CEO, Abdelaziz Yatribi. “At Yamna, we look forward to playing a key role in the success of this project, leveraging our expertise in green hydrogen and ammonia.”

Port of Açu’s Decarbonization Efforts

Eugenio Figueiredo, CEO of Port of Açu, highlighted the facility’s role in supporting industrial decarbonization: “Porto do Açu offers one of the best infrastructures in the country to sustainably support the decarbonization of the industry, with deep draft, available land with direct access to the quay, and a service cluster bringing together multiple suppliers for port and maritime support.”

Broader Hydrogen Industry Initiatives

Yamna’s project is part of a broader push for green hydrogen in Brazil. The Port of Açu has previously signed land reservation agreements with Fuella for a 520MW ammonia plant and collaborated with Shell’s Brazilian subsidiary on a planned 10MW green hydrogen pilot plant. Additionally, Brazil recently enacted a R$18.3 billion ($3 billion) tax credit scheme for clean hydrogen producers, with subsidies allocated via competitive auctions from 2028 to 2032.

Yamna also holds land rights for a similar green ammonia project in Oman’s Salalah region, aiming for one million tonnes of annual production. This diversification highlights Yamna’s global ambition to lead in green ammonia and hydrogen energy markets.

Link: https://fuelcellsworks.com/2025/01/07/green-hydrogen/yamna-secures-land-at-port-of-acu-for-gigascale-green-ammonia-hub-targeting-1-million-tonnes-annual-production-by-2030

Fallback Friday Story: KfW Provides €100M Loan to Boost Chile’s Green Hydrogen Economy

EUR 100 million for a promotional loan to build a green hydrogen economy

  • Contributing to the sustainable transformation of the Chilean economy
  • Basis for future hydrogen partnerships with European customers

On behalf of the Federal Ministry for Economic Affairs and Climate Action (BMWK), KfW has today signed a contract with the Republic of Chile, represented by the Chilean Ministry of Finance, and the Chilean economic development agency Cooperación de Formento de la Producción (CORFO) for a promotional loan of EUR 100 million to build a green hydrogen economy in Chile that takes social and environmental concerns into account. The loan is part of the European Global Gateway Renewable Hydrogen Funding platform, which offers tailored financing for private and public investments. It will comprise a total of up to EUR 1 billion, with which CORFO will refinance banks or issue guarantees to them. In turn, the banks will provide loans to private and public hydrogen projects. Projects for the production and use of green hydrogen along the entire value chain will be financed. These could be, for example, plants for the production of green hydrogen (e.g. renewable energy projects and electrolysers) and its further processing (e.g. to form ammonia). In addition, storage and transport infrastructure as well as projects for the industrial use of green hydrogen (e.g. for steel production) and factories for the manufacture of electrolysers can also be financed.

“Chile has extraordinary potential when it comes to renewable sources of energy for the successful development of hydrogen production. In order to take advantage of this, leveraging private investments for market development is essential. KfW’s financing will have a structure-building effect at an early stage in order to mobilise private capital to finance Chilean green hydrogen projects on an industrial scale. At a later date, this will also enable the sale of green hydrogen to European customers within the framework of hydrogen partnerships,”

says Christiane Laibach, Member of the Executive Board of KfW Group.

With its large areas of available land, sunny deserts and strong winds in the south, Chile offers excellent conditions for building a globally competitive hydrogen economy. This will drive the sustainable transformation of the Chilean economy, open up business opportunities for Chilean and European companies and underline the importance of a fair energy transition.

The promotional loan will support the internationally agreed Team Europe Initiative (TEI) promotional programme by the EU and its Member States. KfW’s financing is also in line with the German Federal Government’s hydrogen initiative and the EU’s development goals. The financing platform will be able to provide funding of almost EUR 1 billion. Of this amount, EUR 100 million will come from KfW, EUR 100 million from the European Investment Bank (EIB), EUR 16.5 million from the EU, USD 150 million from the World Bank and EUR 400 million from the Inter-American Development Bank (IDB). Around EUR 230 million will be provided by CORFO and other financiers.

Link: https://fuelcellsworks.com/2025/03/04/fallback-friday/fallback-friday-story-kfw-provides-100m-loan-to-boost-chile-s-green-hydrogen-economy

Brazil Emerges as a Destination for Green Investments After the U.S. Shift

The review of the incentive policies of the Inflation Reduction Act (IRA) in the United States and the withdrawal of the world’s largest economy from the Paris Agreement, under the Donald Trump administration, opens up new opportunities for Brazil to attract investments in green projects, such as wind generation and green hydrogen, according to industry executives.

There is an understanding that the commitment of companies and investment funds to environmental goals can boost Brazil as a global player in the energy transition.

However, the country faces macroeconomic challenges that may hinder the arrival of these resources.

Green differential

The United States’ decision to suspend incentives provided for in the IRA, which allocated billions of dollars to clean energy projects, frees up capital that was previously directed to the North American market, according to Luis Viga, chairman of the board of the Brazilian Green Hydrogen Industry Association (ABIHV) and of Fortescue Brasil.

“There are examples of companies that have given up on hydrogen projects in Brazil to direct investments to the US, attracted by the IRA incentives under the Biden administration. With the suspension of these incentives, some of these resources may return to Brazil,” says Viga in an interview with the Axis agency.

He points out that after the hydrogen market went through a “hype” phase, investors are now looking at where the conditions are met that actually lead to hydrogen production at a lower cost, such as the abundance of renewable energy.

“This is the case in Brazil. If we want to attract investments to Brazil, our competitive edge is green,” he emphasizes.

Viga says that, although many companies are reviewing their sustainable policies and projects, Fortescue — the fourth largest iron ore mining company in the world — is committed to its climate goals, including abandoning the use of fossil fuels in its operations in Australia by 2030.

Here, the company hopes to launch a green hydrogen production plant in the Pecém Complex, in Ceará, with an estimated investment of R$17.5 billion. The project is expected to produce around 500 tons of hydrogen per day from the electrolysis of water, using 1.2 gigawatts of renewable energy.

The challenges are macroeconomic

For Elbia Gannoum, president of the Brazilian Association of Wind Energy and New Technologies (Abeeólica), Brazil is well positioned to attract these investments, ranked among the five most attractive countries in the world for the renewable energy industry.

“The country ends up being in a better position to attract renewable resources in general, both for offshore and onshore wind power, hydrogen, and even to offer energy to data centers and companies that want to consume renewable energy,” he highlights in an interview with Axis.

Despite the opportunities, Gannoum points out that Brazil has macroeconomic challenges that are not very favorable for investments, such as a fiscal deficit, inflation, and high interest rates.

“The moment for investment in Brazil is quite challenging. On the other hand, these are investments that look at the long term, and we have the capacity to deal with this series of complex variables,” he points out.

Juliana Ramalho, partner in the ESG area at Mattos Filho law firm, also notes that bureaucratic and tax issues are other obstacles.

“Bureaucratic and tax issues are important drivers when investors are looking at Brazil,” she says.

Still, the lawyer believes there is potential to attract companies that are truly committed to environmental policies, in contrast to the repositioning of the US and large companies in relation to ESG (Environmental, Social, and Governance) practices.

“Brazil has great potential. Some [companies] have ridden the [ESG] wave. These will give up on this wave at the first opportunity. And there are other companies that are very serious and will continue to pursue this ESG agenda.”

Giovani Loss, partner in the Energy Transition area at Mattos Filho, emphasizes that legislation has evolved to prevent greenwashing, requiring companies to be more transparent in their reports and commitments, in addition to pressure from society itself, which reduces the effects of Trump’s political actions on companies’ decisions.

“Multinational companies face other pressures from other governments, the judiciary and the population, stakeholders and investors. This even calls into question the State’s traditional regulatory capacity, because it exceeds the State’s capacity to regulate a series of measures”, he comments.

“Companies understand that decisions are not only directed by the government, but by their own strategies, and that the demand for clean energy is here to stay and will only increase”, adds Loss.

Link: https://fuelcellsworks.com/2025/02/18/energy-policy/brazil-emerges-as-a-destination-for-green-investments-after-the-u-s-shift

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