Fortescue Future Industries Pty Ltd (FFI), a wholly owned subsidiary of Fortescue Metals Group Ltd (Fortescue), and Porto do Açu Operações S.A. (Port of Açu), a subsidiary of Prumo Logistica S.A. (Prumo), have signed a Memorandum of Understanding (MOU) to assess the opportunity to develop hydrogen-based green industrial projects in Rio de Janeiro, Brazil.
Signed in late February, the MOU will allow for FFI and Port of Açu to conduct development studies into the feasibility of installing a green hydrogen plant at Port of Açu, Latin America's largest privately owned deep-water port-industrial complex.
Subject to the outcome of the studies, the project envisages construction of a 300 megawatt capacity green hydrogen plant at Port of Açu, with potential to produce 250,000 metric tons of green ammonia per year.
The availability of green hydrogen and renewable power is expected to drive further sustainable industrialisation of the port, including production of green steel, fertilizers, chemicals, fuels, and other sustainably manufactured industrial products.
The MOU also lays the groundwork for onsite solar power development projects, as well as offshore wind development projects in the states of Rio de Janeiro and Espirito Santo.
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."
Jose Firmo, Chief Executive Officer of the Port of Açu, said: "The Port of Açu is sailing steadfastly ahead toward the sustainable economy of the future. One of the pillars of our vision for the port's industrialization are today's operational energy transition projects and the renewable energy-fuelled green industries of tomorrow.
"Açu is a gateway between the growing Brazilian economy and rapidly expanding low carbon businesses around the globe."
Mr. Firmo said: "It is exhilarating to collaborate with an international partner of this calibre on such a visionary project. This will be the first green hydrogen plant in the country and will place FFI and Açu at the forefront of clean energy production and the green industrialization of Brazil."
Subject to the completion of feasibility studies and approvals, individual projects will be developed by FFI with ownership and project finance sources to be separately secured without recourse to Fortescue.
Prumo is a private Brazilian company controlled by EIG, a leading institutional investor to the global energy sector.
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 mixes more sustainable.
About Prumo
Prumo is the multi-business economic group responsible for the strategic development of the Port of Açu.
Prumo is 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 six 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 and gas, port logistics and mining sectors.
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.
About EIG
EIG is a leading institutional investor to the global energy sector with $22.0 billion under management as of 31 December 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.
