Fortescue seeks to build green hydrogen plant in Brazil – Reuters

Fortescue Metals Group Ltd. unit Fortescue Future Industries and seaport and industrial hub Porto do Açu Operações SA expect to make a final investment decision this year on the construction of a 300-megawatt green hydrogen plant in Brazil, in line with Fortescue's bid to attain carbon neutrality by 2030, Reuters reported March 15, citing an interview with company executives.

According to the report, Fortescue Future Industries signed a memorandum of understanding with Açu in late February to conduct a feasibility study on the installation of the green hydrogen plant onsite.

The plant would be powered by solar and wind power projects, Açu's CEO José Firmo and Fortescue Future Industries' Latin America head Agustín Pichot told the newswire. The hydrogen from the plant would be used to produce 250,000 tons per year of ammonia, an agricultural fertilizer component.

The executives said the required investment, if the project pushes through, will "likely be in the hundreds of millions of dollars," and that construction may begin within months of a final investment decision.

Pichot flagged Norway's Equinor ASA, which signed a separate MOU with Fortescue in February to evaluate the construction of a solar plant at Açu, as a potential partner in the project.

Last November, Fortescue said it was looking into the development of a 250-MW green ammonia plant at Bell Bay, Tasmania, in Australia, with an investment decision expected in 2021.