Unigel preps $1bn+ green hydrogen investments in Brazil
Unigel is planning a R$7.8 billion ($1.5 billion) investment in a green hydrogen complex the company is developing in Brazil.
The petrochemical company announced an initial $120 million investment last year for the first phase of the project, which will produce 10,000 tons of green hydrogen and 60,000 tons of green ammonia per year (PFR, 7/25).
Located in the state of Bahia, the complex is under construction, and is set to start operating by the end of this year. The complex comprises three phases, and once fully operational by 2027, it is expected to produce a total of 100,000 tons of hydrogen and 600,000 tons of ammonia annually.
In 2021, Unigel signed a $185 million agreement with Casa dos Ventos for renewable energy from the Babilona Sul wind complex, located in Bahia (PFR, 10/4/21). The output contracted will be used by the complex for the production of hydrogen.
Unigel has yet to procure financing for the last two phases of the complex, and is exploring a potential IPO and strategic partnerships.
“Given the country's potential in wind and solar energy generation, 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 carbon-free raw materials and fuels,” said Noronha Santos, chief executive of Unigel.