The northeastern state of Piaui in Brazil, led by Governor Rafael Fonteles, aims to become a prominent center for renewable hydrogen production. They seek to supply the domestic industry, particularly the agricultural sector. Piaui has abundant solar and wind energy resources, making it a promising hub for renewable hydrogen.
While Ceara has taken the lead in project announcements, Piaui is actively attracting developers for large-scale ventures. Discussions with potential partners are underway, targeting around 1GW electrolyser capacities per project. Solatio, a Spanish renewables company, has unveiled two major projects in Piaui with a combined capacity of nearly 2.4GW.
The current investment in Piaui's hydrogen sector is estimated at 50 billion Brazilian reais ($10.2 billion). Fonteles is engaging with potential developers in Europe, including Spain, Germany, the UK, and Sweden, to expand the project pipeline.
The state of Piaui in Brazil is considered ideal for green hydrogen production in South America. It has abundant renewable energy resources and produces three times the energy it consumes, soon to increase to five times. While many projects in Brazil focus on exporting hydrogen, Piaui's shorter coastline suggests a focus on domestic use, particularly in agriculture.
The state is part of Brazil's agricultural region and could supply ammonia for the domestic market, as the agricultural sector imports a significant portion of its fertilizer needs. Additionally, renewable hydrogen could be used in steelmaking, considering Piaui's rich iron ore resources.
Piaui offers favorable conditions for green hydrogen production and has a surplus of renewable energy. The hydrogen produced could be used domestically in agriculture and potentially for the fertiliser market. Piaui faces challenges in terms of infrastructure development, but plans for a new port and rail corridor are underway. Federal-level support and a hydrogen industry strategy are also expected to drive progress.
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