Innovative green ammonia and e-methanol projects selected for acceleration in Brazil
12 December 2024 – Brazil is solidifying its position as a leader in the low-carbon industrial transition with the announcement of three projects selected by the Industrial Transition Accelerator (ITA) for its Project Support Programme. These projects, developed by European Energy, Fortescue, and Green Energy Park, join Atlas Agro —the company behind the first project announced during the ITA’s Brazil programme launch in October—in a growing pipeline of low-carbon plants that will be promoted and supported.
Selected for their alignment with the ITA’s mission to decarbonise heavy industry and long-distance transport, the projects represent key breakthroughs in the deployment of green industrial technology at commercial scale in Brazil.
- European Energy is developing Brazil’s first large-scale plant to produce synthetic methanol from green hydrogen (e-methanol) in the Suape Industrial and Port Complex. The approximately USD 344 million plant is targeting a production capacity of 100,000 tonnes per year and could avoid up to 254,000 tonnes per year of CO2e emissions compared to conventional methanol production. [1]
- The Fortescue H2V project is developing an integrated green hydrogen and ammonia facility in the Port of Pecém capable of producing 168,000 tonnes of hydrogen per year (equivalent to 0.9 million tonnes of ammonia), with total investment requirements of around USD 4 billion. Once operational, each tonne of hydrogen it produces would avoid the approximately 12 tonnes of CO2e emissions normally associated with the production of this commodity.
- Green Energy Park is developing a green ammonia production and export facility in the State of Piauí whose first phase is targeting an export capacity of 2.1 million tonnes per year and would involve an investment of approximately USD 4.5 billion. Upon completion of this first phase, the project could avoid up to 3.2 million tonnes of CO2e emissions per year compared to conventional ammonia production. The project scope includes domestic use of green hydrogen for industrial applications like green steel and the establishment of a green shipping corridor to Europe and elsewhere in the world.
These projects, alongside Atlas Agro’s Uberaba Green Fertilizer project, are the first to benefit from the ITA’s programme in Brazil, following a partnership agreement announced in July between the ITA and the Brazilian Ministry of Development, Industry, Trade, and Services (MDIC) that Brazil would be the ITA’s first Country Partner. The announcement also marked the launch of a call for expressions of interest (EOIs), inviting companies to propose projects for inclusion. The EOI period closed on 1 November, with the ITA continuing to evaluate submissions and identify high-potential projects.
Faustine Delasalle, Executive Director of the ITA, said: “We are delighted to select projects by European Energy, Fortescue, and Green Energy Park as part of our programme to accelerate green industrial developments in Brazil. These flagship low-carbon production facilities represent the type of industrial investments that we need to see multiply in the country and around the world to achieve our collective climate goals. They also demonstrate there is a real economic opportunity for Brazil in green industry growth. Working closely with our partners in Brazil, we will improve the policy and market environment in which they operate to allow these and similar projects to thrive."
“Our focus is on supporting companies in Brazil by establishing markets for their low-carbon products, informing public policy development, and linking them with financiers," she added. "We aim to support progress of the most advanced projects to final investment decisions within the next two years, while creating better conditions for new green industrial projects to be announced as well."
Rodrigo Rollemberg, Secretary of Green Economy, Decarbonisation, and Bioeconomy of MDIC, said: “Brazil offers unique opportunities for the decarbonization for all countries, given its comparative advantages to become a global leader in low-carbon products. ITA will certainly contribute to achieving these goals, which are aligned with the National Strategy for Industrial Decarbonization, under development by the Ministry of Development, Industry, Trade and Services.”
Building a Supportive Environment for Investment
The ITA’s in-country Project Support Programme aims to strengthen the investment case for green industry by addressing real-world challenges. Selected projects will inform and benefit from ITA activities to improve investment conditions and accelerate progress toward the final investment decisions that mark the beginning of plant construction.
To support this effort, the ITA has released an
Insights Briefing, co-authored with Systemiq, the ITA’s Anchor Partner in Brazil, summarising key opportunities and challenges identified in discussions with selected projects and industry stakeholders. Three priorities have emerged:
- Demand: Securing the long-term offtake agreements required to underpin financing remains the most salient challenge for green industrial projects in Brazil. The ITA plans to work with stakeholders to stimulate demand, create lead markets, and facilitate long-term offtake for Brazilian green industrial goods internationally and domestically.
- Policy: In Brazil and countries around the world, the policy frameworks in which projects are developed have a significant impact on their investment case. The ITA aims to work with the government of Brazil via its partnership with MDIC to inform the development of industrial policy that can support green industrial projects.
- Finance: Even as projects strengthen their investment case, securing suitable finance can prove challenging, particularly for first-of-a-kind projects. The ITA intends to work closely with the recently launched Brazil Climate and Ecological Transformation Investment Platform (BIP) to prepare and present projects to prospective investors. Two projects selected by the ITA, those led by Atlas Agro and Fortescue, have already been included on the BIP, representing an important step forward.
Corporate partnerships
Thiago Arruda, Head of Latin America Business Development for European Energy, said: “Our e-methanol project in Suape is symbolic of Brazil’s neoindustrialization on a sustainable and technological basis. The project will have a multiplier effect beyond the constraints of our plant: particularly in the sugarcane sector, a traditional area of the local economy, which will serve as a source of biogenic carbon dioxide.”
Luis Viga, Country Manager of Brazil for Fortescue said: "The development of the green hydrogen industry is a fundamental pillar for Brazil's neoindustrialization. At Fortescue, we believe the country has significant competitive advantages to position itself in the global race. The progress of this industry and our Pecém Project can contribute to laying the foundation for a new production structure that will span sectors such as mining, green steel, e-fuels, and fertilizers."
Bart Biebuyck, Chief Executive Officer of Green Energy Park, said: "We are excited to work with the ITA to accelerate our transformative green hydrogen projects in Brazil. COP 30, in 2025, is the perfect venue to showcase the implementation of a Giga-Watt-scale energy transition project leveraging the unique and natural advantages for producing green hydrogen available in the North-East of Brazil."
[1] The emissions reduction figure for the European Energy project is an estimate provided by the ITA and solely considers emissions related to production within the boundaries of the e-methanol facility.
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Notes to Editors
About the ITA: The ITA is a global multistakeholder initiative to catalyse decarbonisation across heavy-emitting industry and transport sectors, that represent a third of global emissions. With expansive networks across industry, financial institutions, and governments, the ITA brings together global leaders to unlock investment at scale, for the rapid deployment of decarbonisation solutions. Within three years, it aims to significantly grow the pipeline of commercial-scale, clean industrial projects to reduce emissions by 2030 and enable delivery of Paris Agreement-aligned ambition for these sectors.
https://ita.missionpossiblepartnership.org/
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About European Energy: European Energy aims to be a major global force in driving the green transition. The company develops, builds and operates assets including on-shore/off-shore wind and solar generation, Power-to-X, battery storage and carbon capture.
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About Fortescue: Fortescue is the technology, energy and metals group accelerating the commercial decarbonisation of industry, rapidly, profitably and globally. As a global leader in the green revolution, the company operates in three integrated areas: the development of technological solutions, green energy production, and research into critical minerals for the energy transition.
As our business develops globally, our commitment to building thriving communities expands with us. Delivering positive social and economic change through training, employment and business development opportunities is a key focus.
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About Green Energy Park: Green Energy Park (GEP) is a group of companies, implementing one of the largest climate impact undertakings in the world. GEP’s objective is to design, build, and operate hydrogen production infrastructure with ammonia and methanol as the long-distance renewable energy carriers of choice. As a molecules specialist, and to achieve cost leadership, GEP implements leading hydrogen technologies on its standardized production platform at gigawatt scale.
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