(Reuters) – Brazilian chemical maker Unigel on Monday announced plans to build a green hydrogen plant in the northeastern state of Bahia, with an initial investment of $120 million and the goal of making it one of the largest of its kind in the world.
The plant is expected to start operations by the end of 2023, Unigel said in a statement. The first phase of the project foresees a production capacity of 10,000 tonnes of green hydrogen and 60,000 tonnes of green ammonia per year.
Produced with renewable power, green hydrogen has emerged as an important alternative fuel, drawing attention from several companies in Brazil as it could potentially cut greenhouse gas emissions from sectors such as transportation and steel.
The electrolysis process for hydrogen production at the Bahia plant will be carried out in equipment supplied by Germany’s ThyssenKrupp Nucera, controlled by Thyssenkrupp AG (TKAG.DE), totaling 60 megawatts.
Green hydrogen and ammonia produced in the industrial city of Camacari will be offered to customers looking to decarbonize their operations, Unigel said.
Unigel said that in a second phase of its Camacari project, seen happening in 2025, it expects to quadruple the output of green hydrogen and ammonia.