EU pledges funding from €2bn pot for 10GW Brazilian green hydrogen project

Green Energy Park (GEP) has ambitious plans to export ammonia produced in Brazil to a terminal in Croatia. European Commission President Ursula von der Leyen announced during the European Hydrogen Week in Brussels that the 10GW green hydrogen and ammonia complex in Brazil is set to receive financial support from both the European Union and the Brazilian government. This funding is part of the €2 billion ($2.2 billion) Global Gateway funding pledged to Brazil earlier in the year.

GEP's objective is to export green ammonia from the northeastern state of Piauí to its planned import terminal on the Adriatic island of Krk in Croatia. From there, it will be distributed to industrial consumers in southeast Europe, including industrial areas in southern Germany and northern Italy. Krk was chosen because the Croatian government is constructing a hydrogen-ready gas pipeline from the island, which currently hosts an LNG terminal. Additionally, no other companies are currently planning to transport green ammonia to this region of Europe.

The Green Energy Park Piauí project in Brazil, which already has environmental approval, will be implemented in six stages at an estimated cost of €13 billion (excluding the renewables component). The first green hydrogen and ammonia production is expected in 2028, with the full 10GW capacity to be completed by 2035. The electrolysers for this project, totaling 10GW, will primarily be powered by solar energy, supplemented by wind power and hydroelectricity from the Brazilian grid. The Brazilian grid, deriving over 90% of its electricity from green sources, ensures that any green hydrogen or ammonia produced there complies with EU rules on additionality, temporal, and geographic correlation.

There are ongoing discussions about exporting some of the output to the UK, the Middle East, and/or Japan and South Korea. GEP is actively engaging with potential offtakers, including those in the shipping industry.

Piauí State Governor Rafael Fonteles highlighted the exceptional solar and wind conditions in Piauí, making the grid 100% green. With ample freshwater reserves, the state is well-positioned to provide a continuous, year-round supply of green electricity, aligning with the novel RED requirements signed into law earlier in the year. Piauí officials believe that the state can produce the most cost-effective green hydrogen and ammonia globally.

GEP recently signed a preliminary offtake agreement with Slovenian wine producer Puklavec Family Wines to utilize hydrogen derived from imported ammonia in winemaking. Initially planned as a 5GW facility, GEP has expanded its project in Piauí to reach 10GW.

Brazil, particularly the Port of Pecém in the state of Ceará, is emerging as a significant hydrogen hub. Fortescue, a mining giant, is poised to invest $5 billion in a 300,000-tonnes-per-year green hydrogen plant at this location. The favorable combination of abundant wind and solar resources positions Brazil as a key player in low-cost green hydrogen production by 2030, according to Germany’s H2Global Foundation.