EU pledges funding for 10GW Brazilian hydrogen project for European exports
RE developer Green Energy Park's (GEP) proposed 10 GW green hydrogen and ammonia facility in the Brazilian state of Piaui is set to receive funding from EU's €2bn Global Gateway investment in the country's hydrogen value chain. European Commission President Ursula von der Leyen made the announcement at her keynote speech at the European Hydrogen Week 2023.
The clean ammonia produced at the Brazilian facility is primed for exclusive exports to the European region. GEP's planned import terminal on Krk island in Croatia will receive and store the shipped ammonia for the consumption of industrial users in the region, especially in Germany and Italy.
"Together with President Lula of Brazil, we are announcing the European Union's support to build one of the biggest hydrogen projects in the world, in the Brazilian state of Piaui", said Ursula. She did not reveal the exact amount of funding earmarked for the project though.
The Green Energy Park Krk is being conceived as a unique midstream facility strategically located in the North Adriatic sea, to receive renewable ammonia from six different locations around the world including the Piaui facility.
Upon completion, the import hub will be able to store ammonia equivalent of about 1.8 million tons of hydrogen per year, which is nearly 18 percent of EU's official import target of 10 million tons of hydrogen by 2030, the company claims.
GEP has said that the staged development program will start ammonia trading through on-site bunker vessels, until the completion of the first 100,000 m3 purpose-built ammonia storage tank in Krk expected for mid-2027.
Speaking on the Europe's hydrogen investments, Ursula noted, "Europe is not only a clean hydrogen pioneer, but also a partner – to build a worldwide hydrogen market. With these public investments we are helping attract and mobilize massive private capital".
The Green Energy Park Piaui will be established in six stages at an estimated investment of €13bn excluding the RE components. The facility is expected to see the first green hydrogen and ammonia produced in 2028,with full 10GW completion targeted by 2035.
Brazil is identified as one of the most-favorable countries for low-cost H2 production by 2030, thanks to a perfect combination of both solar and wind energy potentials.