Posted on October 16, 2023
Project developer Green Energy Park (GEP) intends to build a renewable ammonia facility in Brazil for exports to its planned 10mn t/yr import terminal on the Croatian island of Krk.
GEP plans a plant that could produce 1mn t/yr of ammonia from around 5GW renewable power generation capacity in the northeast Brazilian state of Piaui, and signed a preliminary agreement with the Piaui state government on 11 October at the World Hydrogen Congress in Rotterdam.
It plans to construct the plant at Piaui’s special economic zone of Luis Correia, where the state’s first major port is scheduled to open in December with a view to facilitating exports to European markets, said Piaui’s European representative Nathalia Ervedosa who has managed the deal with GEP.
Ammonia from the site would be shipped to the Krk ammonia import terminal, which GEP first announced last month. GEP is in discussions with buyers for the ammonia, Ervedosa said.
The Brazilian plant is “the first of a minimum of eight GW upstream facilities” that GEP intends to develop to supply ammonia to Krk, the firm said, adding that Piaui offers “cost leadership for producing and exporting renewable ammonia”. Ervedosa said renewable power can be produced in Piaui for around €12/MWh.
GEP envisages the import facility at the Krk deepwater port will be able to receive up to 10mn t/yr of ammonia by 2030. It will have facilities for receiving and storing ammonia, and GEP plans to build ammonia cracking plants to be able to deliver supply to European customers as hydrogen. This is part of an aim to to create a “global distribution network with an initial focus on European end markets.”
Piaui has ambitious plans for renewable hydrogen and ammonia production that could be exported or used domestically, such as in fertiliser manufacturing, state governor Rafael Fonteles told Argus in June. All of Piaui’s electricity production comes from renewables and the state produces three times the energy it consumes, which will soon increase to five times, Fonteles said.
First offtake deal
GEP signed a first preliminary deal for supply delivered to Krk at the Rotterdam event. Slovenian wine producer Puklavec Family Wines intends to take hydrogen that is delivered as ammonia for decarbonising its production.
GEP said it “will explore the potential of hydrogen as a renewable energy carrier for all aspects of wine production and distribution”, together with Puklavec.
