(Bloomberg) -- A Norwegian renewable energy company backed by Allianz Capital Partners is targeting a green hydrogen project in Brazil.
Fuella AS has reserved acreage at a hydrogen hub at the Port of Acu in northern Rio de Janeiro state and will make a final investment decision on a 400,000-ton-a-year green ammonia plant within four years, said Mauro Andrade, the executive director of business development at Prumo Logistica SA, which operates the port.
The move comes on the heels of Brazil approving a legal framework to attract investment in the production of low-carbon hydrogen. Demand for the fuel, which gives off no greenhouse gases when burned in a turbine or fed through fuel cell, could surge as the world transitions to clean energy.
Prumo is negotiating with other hydrogen developers and expects to have the 1 million square meters of land for the hub fully reserved within eight months. Andrade anticipates producers will supply export markets and industrial clients in Brazil.
“You have cheap and abundant renewable energy” that is needed to make green hydrogen, Andrade said in an interview. “This helps with the economics.”
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