Fortescue Future Industries and the State of Ceará reinforce joint commitment to develop green hydrogen project at COP27

Governor of Ceará Izolda Cela and representatives of the Pecém Industrial and Port Complex today joined Dr Andrew Forrest AO, Chairman and Founder of FFI, and Agustín Pichot, President of FFI Latin America, to sign an amendment to the memorandum of understanding (MoU) entered into in mid 2021, which will see FFI prioritise the Pecém project and associated feasibility studies.

The amendment also reinforces efforts by the State of Ceará to encourage large scale investments for the development of a green hydrogen hub in the Pecém Industrial and Port Complex, to help provide investment and legal certainty.

FFI is currently working to obtain licenses for the Pecém Project, guaranteeing early engagement with the communities involved. The local government will support the availability of land for the project, including to house transmission lines and sub-stations to access the network connection point.

If the ongoing feasibility studies confirm the project’s viability, FFI is targeting a final investment decision by 2024 and the commencement of large scale hydrogen production in Ceará in 2027.

The amendment reinforces existing MoU commitments, including establishing guidelines to promote the development of a local green hydrogen industry in the State of Ceará, and extends the agreement to cover a period of 20 years, extendable for a further 20 years.

“We are committed to helping to drive the development of a green hydrogen sector in Brazil, not only because of the environmental benefit that will come from end-ing the world’s reliance on fossil fuels but also because of the economic benefits that the green energy transition can bring to local communities. Our studies into a project in Pecém will be informed by the knowledge we have amassed over the last 18 months from across our global portfolio of renewable energy projects and the research and development we’ve completed, including how best to work with local stakeholders to prevent and reduce any impact on local eco-systems,” Dr Forrest said.

“I am pleased to continue working together with the Government of Ceará, and the authorities of the Pecém Industrial and Port Complex. Our continued collaboration will be vital to advancing the development of a green hydrogen industry and making the FFI Pecém Project a reality. This is an exciting opportunity to explore the potential establishment of large scale green industries, that will drive growth and create many jobs for the Brazilian economy,” Agustín Pichot, President of Fortescue Latin America, added.

“Our dialogue with Fortescue has been very productive, with pre-contract signing, significant investments and union for the strengthening of Ceará in the production of Green Hydrogen. This will positively impact our economy, generating more opportunities for the people of Ceará, and will put us in a prominent position in the production of renewable energy,” emphasised Izolda Cela, Governor of the state of Ceará.

“Signing this commitment is of enormous importance for Ceará. Being present at COP 27 and being able to sign this agreement with Fortescue gives us confidence that Ceará will become one of the largest producers of green hydrogen in the world. The people of Ceará have a lot to gain from this development, which will bring more opportunities to our state,” commented Maia Júnior, secretary of Economic Development and Labor of Ceará.

“This signing with Fortescue, shows that the company has increasingly shown interest in investing in a green hydrogen plant in Pecém. It is something that makes us very excited. The Pecém Complex has a lot of potential, since, besides having the Port of Rotterdam as a partner, it has a world-class port terminal and an export processing zone that was the first to start operating in Brazil. So, I am increasingly confident that Pecém will be a world protagonist in attracting enterprises for the production of green hydrogen,” concluded Danilo Serpa, CEO of Pecém Complex.

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