Fortescue and EIG-Backed Companies Sign MOU to Explore Joint Development of Green Hydrogen Plant in Brazil
WASHINGTON, D.C., and RIO DE JANEIRO – EIG, a leading institutional investor to the global energy sector, and Prumo Logística S.A. (“Prumo”), a private Brazilian company controlled by EIG, today announced the signing of a Memorandum of Understanding (“MoU”) between Prumo’s subsidiary, Porto do Açu Operações S.A. (“Port of Açu” or the “Port”), and Fortescue Future Industries Pty Ltd (“FFI”). FFI is a wholly owned subsidiary of Fortescue Metals Group Ltd (“Fortescue”).
Under the terms of the MoU, the parties will jointly conduct feasibility studies on installing a green hydrogen plant at the Port of Açu, Latin America’s largest privately owned deep-water port-industrial complex, marking a major step toward developing a system capable of producing industrial-scale green hydrogen. The MoU also lays the groundwork for onsite solar power and offshore wind development projects in the states of Rio de Janeiro and Espirito Santo.
The proposed green hydrogen plant would have 300 megawatts of capacity with potential to produce 250,000 metric tons of green ammonia. The availability of green hydrogen and renewable power is expected to drive further sustainable industrialization at the Port, including production of green steel, fertilizers, chemicals, fuels, and other sustainably manufactured industrial products. If the project moves forward, it will accelerate the decarbonization of hard-to-abate sectors such as transportation, manufacturing, and heavy industry.
FFI Chief Executive Officer, Julie Shuttleworth, said, “FFI is assessing renewable energy and green hydrogen opportunities globally and will lead and drive the green energy and product industry as we transition away from fossil fuels. I am excited to announce this MOU with Port of Açu. The opportunity to establish totally new and future large-scale industries will drive growth in the Brazilian economy. We expect the potential for new green industries at Port of Açu to substantially diversify, broaden and deepen Brazil’s already skilled workforce”.
Carlos Tadeu Fraga, CEO of Prumo, said, “We are thrilled to partner with FFI on this exciting project, which allows us to explore new opportunities in the growing green hydrogen space. This partnership is the latest milestone in Prumo’s mission to build a port complex that fosters economic and social progress by sustainably optimizing the development of Brazil’s energy and infrastructure assets. We are already well-positioned to achieve that mission, and this project would help us further realize these ambitions in Brazil and across the region.”
R. Blair Thomas, CEO of EIG and Chairman of Prumo’s Board of Directors, said, “We are pleased to welcome FFI as a partner in support of this potentially ground-breaking green energy project. We are realizing tremendous progress at the Port and believe that Prumo, with its roster of world-class partners and clients, is primed to be a leader in Latin America’s energy transition.”
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About Port of Açu
Port of Açu is the largest privately owned deep-water port-industrial complex in Latin America. In operation since 2014, Port of Açu is managed by Porto do Açu Operações, a partnership between Prumo Logística and the Port of Antwerp International, a subsidiary of the Antwerp Port Authority. Planned for the next five years, the port’s industrialization will be founded on, amongst others, sustainable projects and clean energy generation: chemicals, fuels, pelletizing, steel and other companies will be able to use green hydrogen as input to make their energy mix more sustainable.
About Prumo Logística
Prumo is the multi-business economic group responsible for the strategic development of the Port of Açu. We are controlled by EIG, a US-based fund focused on energy and infrastructure, and by Mubadala Investment Company, an active and innovative investor that allocates capital in a variety of segments. Through the Group’s 6 companies (Porto do Açu Operações, Ferroport, Açu Petróleo, GNA, Dome and BP Prumo) and our clients and partners, the Port of Açu serves the oil & gas, port logistics and mining segments. Its infrastructure has unique potential to support new businesses and several industrial niches. Guided by Prumo’s strategic perspective, Açu is now one of the largest and most promising enterprises in Brazil. With operational safety and efficiency combined with the strength of the Group’s long-term vision and the proximity to the main oil exploration basins, Açu is consolidating into the best solution for the most challenging demands.
EIG is a leading institutional investor to the global energy sector with $22.0 billion under management as of December 31, 2020. EIG specializes in private investments in energy and energy-related infrastructure on a global basis. During its 39-year history, EIG has committed over $34.9 billion to the energy sector through more than 365 projects or companies in 36 countries on six continents. EIG’s clients include many of the leading pension plans, insurance companies, endowments, foundations and sovereign wealth funds in the U.S., Asia and Europe. EIG is headquartered in Washington, D.C. with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. For additional information, please visit EIG’s website at www.eigpartners.com.