Shell and Brazil’s Acu port have agreed to develop a green hydrogen generation pilot plant at the port’s facilities, located in the northern region of the state of Rio de Janeiro.
Under the terms of a memorandum of understanding, the pilot plant, which is expected to be ready in 2025, will have an initial capacity of 10 MW and could reach 100 MW by 2029, following the expansion plan of the unit. Shell said that part of the produced hydrogen will be destined for storage and subsequent shipment to potential consumers, while the remaining hydrogen will be used for the production of renewable ammonia.
The project is a pioneer in Brazil and is expected to function as a research laboratory to develop learning, perform decarbonisation tests, and boost this industry in the country. The resources for the construction of the unit come from the Research, Development & Innovation (PD&I) clause of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), which determines the mandatory application of a percentage of gross production revenue, in projects that stimulate research and the adoption of new technologies in the energy sector. Shell Brazil is expected to invest between $60m and $120m in PD&I in 2022.
Shell has hydrogen generation projects in Germany, the Netherlands and China. Acu port is a multi-business platform developed by Prumo Logística, controlled by US-based institutional investor EIG Energy Partners. In addition to this hydrogen pilot, the port is also involved in solar and wind projects.