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

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

November 9th, Sharm El Sheikh, Egypt – The Brazilian State of Ceará and Fortescue Future Industries (FFI) have today reinforced their intention to develop a green hydrogen project in the northeast of Brazil which could start large-scale green hydrogen production as early as 2027.

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 prioritize 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 substations 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 ending 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, said.

“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,” emphasizes Mrs. 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”, 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,” concludes Danilo Serpa, CEO of Pecém Complex.

About the FFI Pecem Project

The FFI Pecem Project aims to produce green hydrogen and its derivatives in the Pecem Industrial and Port Complex, Ceará – Brazil.

The prospective project will be fuelled by Renewable Power Purchase Agreements (PPAs) for the production of green hydrogen and other green products. The water used in the electrolysis process will be either from a new desalination or water recycling plant.

Currently, the project is in the feasibility study stage in which engineering, environmental and social impact studies are being carried out to identify viable opportunities to produce green hydrogen in the region, while protecting biodiversity and ensuring opportunities for local communities.

FFI has a strong commitment to empowering communities and will seek to provide positive economic and social benefits, jobs, training, and skills development at all stages of the project. At the same time, FFI recognizes and values the unique biodiversity of the regions in which it operates and is committed to safeguarding such biodiversity through responsible environmental management.

About Fortescue Future Industries (FFI)

Fortescue Future Industries (FFI) is a global green energy company committed to producing zero-carbon green hydrogen from 100 per cent renewable sources.

Green hydrogen is a zero-emission fuel, that when used produces nothing but water. It is a practical and implementable solution that will help revolutionise the way we power our planet: helping to decarbonise heavy industry and create jobs globally.

FFI is leading the green industrial revolution, developing technology solutions for hard-to-decarbonise industries, while building a global portfolio of renewable green hydrogen and green ammonia projects with a goal to produce 15 million tonnes per year of green hydrogen by 2030, rising to 50 million tonnes per year in the decade thereafter.

FFI is also leading the world effort to help decarbonise hard-to-abate sectors and is responsible for the decarbonisation of one of the biggest resources companies in the world by 2030 – our parent company Fortescue Metals Group (ASX FMG).

www.fortescue.com

About Pecém Industrial and Port Complex

The Pecém Indsutrial and Port Complex (CIPP S/A) is a joint venture formed by the State Government of Ceará, in Brazil, and the Port of Rotterdam, in the Netherlands. A multinational company responsible for managing and developing an industrial and port complex on the west coast of Ceará with over 19,000 hectares and composed of an Industrial Area, which has some of the main manufacturing units in northeastern Brazil; the Port of Pecém, a world-class offshore terminal; and our subsidiary ZPE Ceará, the first free trade zone to operate in Brazil.

www.complexodopecem.com.br

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