Shell Brazil and Port of Açu announce groundbreaking green hydrogen project

Pilot plant will be the first to go into operation in Brazil

Rio de Janeiro, May 19th, 2022 – Shell Brazil and Port of Açu signed a Memorandum of Understanding (MoU) for the joint development of a green hydrogen generation pilot plant at the port’s facilities, located in the northern region of the State of Rio de Janeiro. The project is pioneering in Brazil and will work as a research laboratory to develop learning, to carry out decarbonization tests, and to boost this industry in the country.

The funds for the construction of the unit come from the Research, Development & Innovation (RD&I) clause of the National Agency of Petroleum, Natural Gas, and Biofuels (ANP), which determines the mandatory application of a percentage of the gross revenue from production in projects that encourage research and the adoption of new technologies in the energy sector. Shell Brazil is expected to invest between $60 million and $120 million in RD&I in 2022.

The pilot-plant, which should be ready by 2025, will have an initial capacity of 10 MW and may reach 100 MW, according to the unit’s expansion plan. Initially, electricity from the national grid will be connected to the electrolysis plant, whose main product will be renewable hydrogen. Part of this generated hydrogen will be destined for storage and later shipping to potential consumers. The remaining hydrogen is destined for the renewable ammonia generation plant.

“This is a project of immense importance not only for Shell and its partners, but also for Brazil. Our purpose with this pilot is to foster the development of an entire value chain of renewable hydrogen generation, from technology suppliers, going through the mastery of plant operation, to the training of skilled labor. In addition, we intend to enable a series of proofs of concept regarding the sectors’ decarbonization. It will be a true laboratory for generating knowledge and value for both Shell and the country,” said the president of Shell Brazil, André Araujo. The pilot plant is a further step of Shell Brazil in reducing the CO2 footprint of its business, in line with the goals of the Paris Agreement and the Powering Progress strategy launched in February 2021.

“The execution of this agreement is a milestone in the development of the green hydrogen market in Brazil. The world-class infrastructure of Port of Açu is an essential component in accelerating the development of low-carbon projects and the industry’s decarbonization. We are very happy to join forces with Shell and to contribute to the efforts of transitioning to a low carbon economy,” said José Firmo, CEO of Port of Açu.

Globally, Shell has hydrogen generation projects in Germany, the Netherlands, and China. Port of Açu is a multi-business platform, developed by Prumo Logística, controlled by EIG Energy Partners, a leading institutional investor in the global energy and infrastructure market. The port already has projects in green hydrogen, solar and offshore wind energy.

About Shell

Being 109 years in the country, Shell is an integrated energy company with interests in Upstream, the New Market for Natural Gas, Trading, Research & Development and the Development of Renewable Energy, with a trading business in the open market and environmental products, Shell Energy Brazil. Here, fuel distribution is managed by the joint venture Raízen, which recently also acquired the Shell Brazil’s lubricants business.

The company works to meet the growing demand for energy in an economically, environmentally and socially responsible manner, evaluating trends and scenarios to face the challenges of the energy future.

About Port of Açu

With activities initiated in 2014, Port of Açu has the third largest iron ore terminal in Brazil, is responsible for 30% of Brazil’s oil exports, with the largest thermoelectric power park in Latin America and houses the largest offshore support base in the world. In all, 19 companies are already installed. Considered to be the gateway to green projects in the country, Açu promotes its industrialization based on projects with lower carbon emissions and clean energy generation to increase its sustainable energy matrix.