A $2.2 billion green hydrogen production plant is planned for construction in northeastern Brazil with German support. The facility will be located in Areia Branca, a coastal city in the state of Rio Grande do Norte, known for producing most of Brazil’s sea salt. The project, named Morro Pintado, aims to open a new chapter for the local economy.
Salt trading has been the backbone of the city’s economy for half a century, employing thousands of people and generating hundreds of millions of reais annually. The hydrogen production plan offers the potential to integrate a high-tech export industry into this foundation, but on a much larger scale. The leading developer is the local company Brazil Green Energy, with significant contributions from German firms. The consortium includes engineering firm Siemens, ThyssenKrupp Uhde, and equipment manufacturer Andritz, with the Deutsche Bahn railway group overseeing the project.
Significance of the project
Northeastern Brazil boasts some of the world’s best wind and solar resources, making this inexpensive, clean energy a crucial component in emission-free hydrogen production. Green hydrogen is produced using renewable electricity to split water into hydrogen and oxygen, a process that emits almost no carbon. The challenge has always been cost, which is why so few of the world’s announced projects have come to fruition.
The Morro Pintado project cleared a significant hurdle when the state environmental agency Idema granted it a preliminary license—the first such permit for a commercial hydrogen production plant in the state. Officials presented the document at a major industrial exhibition in Hannover, Germany, to attract investors. The first phase is designed for a capacity of 500 megawatts, enough to produce about 80,000 tons of green hydrogen annually. The plant will also produce green ammonia and carbamide—key components of low-carbon fertilizers.
Path to Europe
The plan includes an innovative solution for hydrogen transportation. Hydrogen is challenging to transport, so the project involves converting it into ammonia, which is much easier to handle, and loading it onto ships at a dedicated export terminal on site. The cargo will be shipped to Germany, where the ammonia can be converted back into hydrogen or burned directly in industry. This route connects a disadvantaged Brazilian state with Europe’s quest for clean fuel as it seeks to reduce its reliance on Russian gas in heavy industry.
There is also a practical aspect: the northeast already produces more wind and solar energy than its grid can accommodate, leading to wasted electricity on windy days. Converting this surplus into hydrogen is a way to preserve the value that would otherwise be lost.
For investors
The preliminary license does not guarantee the completion of the plant’s construction. The consortium still needs to secure funding and make a final decision on construction, and many hydrogen projects in other locations have stalled at this stage. Therefore, the project should be viewed as a serious intention rather than a certainty. However, it positions Rio Grande do Norte as the second Brazilian hydrogen production hub, following a larger hub developing in Pecém in the neighboring state of Ceará.
For external investors, the presence of prominent German companies serves as a signal of Europe’s serious interest in future fuel sources. The competition is intense: over 1,000 green hydrogen projects have been announced globally, with competitors from Chile to Egypt and Namibia vying for the same European buyers. Thus, a signed license and identified partners are what set a genuine contender apart from a mere press release.