Brazil’s Unigel to invest billions in green hydrogen production

Brazilian chemical manufacturer Unigel is to invest some $2 billion in its complex in the state of Bahia to produce green hydrogen.

The investment is expected cost in the region of $1.5 billion. The plant, located in the city of Camaçari, should have the first of three phases inaugurated by the end of 2023, expanding capacity until it achieves production of 100,000 tonnes of hydrogen by 2027, or 600,000 tonnes of one of its derivatives, ammonia.

The green hydrogen, obtained from the conversion of wind or solar energy, will use electrolysers to be supplied by Thyssenkrupp Nucera.

Unigel announced its plans to build the factory last July, when it said an initial investment of $120 million would be made.

Initially, most of the plant’s production will be exported to regions such as Europe to meet demand for products that reduce or completely eliminate carbon emissions, according to Unigel President Roberto Noronha Santos. 

The company is also understood to be evaluating options to raise funds for the second and third phases of the project, which may include joint ventures and an initial public offering (IPO).