Fortescue Future Industries continues to demonstrate its commitment to building a greener energy future at COP27, signing an amendment to the Memorandum of Understanding (MoU) with the Brazilian State of Ceará and joining forces with the Government of the Republic of Kazakhstan.
Governor of Ceará, Izolda Cela, and representatives of the Pecém Industrial and Port Complex joined FFI Chairman and Founder, Dr Andrew Forrest, and President of FFI Latin America, Agustín Pichot, to sign an Amendment to the MoU entered into in mid-2021 which will see FFI prioritise the Pecém project and associated feasibility studies.
The Amendment also strengthens efforts by the State of Ceará to encourage large-scale investments for the development of a green hydrogen hub in the Pecém Industrial and Port Complex, to help provide investment and legal certainty.
The Amendment also reinforces existing MoU commitments, including establishing guidelines to promote the development of a local green hydrogen industry in the State of Ceará, and extends the agreement to cover a period of 20 years, extendable for a further 20 years.
FFI is currently working to obtain licences for the Pecém Project, guaranteeing early engagement with the communities involved. The local government will support the availability of land for the project, including to house transmission lines and substations to access the network connection point.
The FFI Pecem Project aims to produce green hydrogen and its derivatives in the Pecem Industrial and Port Complex, Ceará, with the prospective project to be fuelled by Renewable Power Purchase Agreements (PPAs) for the production of green hydrogen and other green products. The water used in the electrolysis process will be either from a new desalination or water recycling plant.
The project is currently in the feasibility study stage in which engineering, environmental and social impact studies are being carried out to identify viable opportunities to produce green hydrogen in the region, while protecting biodiversity and ensuring opportunities for local communities.
If the ongoing feasibility studies confirm the project’s viability, FFI is targeting a Final Investment Decision by 2024 and the commencement of large-scale hydrogen production in Ceará in 2027.
Dr Forrest said FFI is committed to helping to drive the development of a green hydrogen sector in Brazil – not only because of the environmental benefit that will come from ending the world’s reliance on fossil fuels, but also because of the economic benefits that the green energy transition can bring to local communities.
“Our studies into a project in Pecém will be informed by the knowledge we have amassed over the last 18 months from across our global portfolio of renewable energy projects and the research and development we’ve completed, including how best to work with local stakeholders to prevent and reduce any impact on local ecosystems,” Dr Forrest said.
Mr Pichot said he is pleased to continue working with the Government of Ceará, and the authorities of the Pecém Industrial and Port Complex.
“Our continued collaboration will be vital to advancing the development of a green hydrogen industry and making the FFI Pecém Project a reality.
“This is an exciting opportunity to explore the potential establishment of large-scale green industries that will drive growth and create many jobs for the Brazilian economy,” Mr Pichot said.
Ms Cela said, “Our dialogue with Fortescue has been very productive, with pre-contract signing, significant investments and union for the strengthening of Ceará in the production of Green Hydrogen.
“This will positively impact our economy, generating more opportunities for the people of Ceará, and will put us in a prominent position in the production of renewable energy.”
CEO of Pecém Complex, Danilo Serpa, said the signing with Fortescue shows that the company has shown interest in investing in a green hydrogen plant in Pecém, something the company is very excited about.
“The Pecém Complex has a lot of potential, since, besides having the Port of Rotterdam as a partner, it has a world-class port terminal and an export processing zone that was the first to start operating in Brazil.”
Secretary of Economic Development and Labor of Ceará, Maia Júnior said signing the commitment is very important for Ceará.
“Being present at COP27 and being able to sign this agreement with Fortescue gives us confidence that Ceará will become one of the largest producers of green hydrogen in the world.”
Dr Forrest met with the Prime Minister of the Republic of Kazakhstan, Alikhan Smailov, on day two of COP27 in Sharm El-Sheikh, Egypt, with the pair signing a Framework Agreement to explore potential projects for renewable energy sources and green hydrogen production in several regions of Kazakhstan, including Atyrau and Mangistau – areas rich with water and wind resources.
The agreement further strengthens the close friendship between FFI and Kazakhstan, and is intended to help meet the Government’s ambitious goals of reducing the country’s greenhouse gas emissions to 15 per cent below their 1990 levels by 2030 and of reaching carbon neutrality by 2060.
Kazakhstan generates more than 70 per cent of its electricity from coal but aims for other sources to supply half its power by 2050.
Dr Forrest said the Government of the Republic of Kazakhstan possesses significant wind and solar energy capacity and is well placed to join FFI on the green industrial revolution.
“Kazakhstan is blessed with extraordinary, abundant renewable energy sources and we want to help the Government tap into those resources as soon as possible.
“We know that green hydrogen is a practical and implementable solution that can help revolutionise the way we power our planet, help decarbonise heavy industry and create local jobs.
“This Framework Agreement sets us on a path to delivering those benefits to the people of Kazakhstan and helping to end a heavy reliance on dirty fossil fuels.”
Prime Minister Smailov said, “As part of the alternative energy sources development, green hydrogen production is an important and priority area for our country.
“According to international studies, Kazakhstan can become one of the top ten largest exporters of this purely green type of fuel. To achieve this goal, the support of quality partners is vital.”
Deputy Minister of Foreign Affairs of the Republic of Kazakhstan, Almas Aidarov, said, “The global trend of decarbonisation and the renewable resources potential of Kazakhstan gives us a chance to become a global supplier of green hydrogen worldwide.
“We are proud to work with FFI.”
